Does Forex stop on weekends?
Around the world, almost all the banks and other financial institutions remain closed for business during the weekends.
Some of these banks might be open for a minor transaction that is not related to forex, but their trading desks remain closed. Banks and other financial institutions can't even process a Western Union money transfer on the weekend. With regards to forex what it means is that the market with an estimation of over $4 trillion liquidity is closed for business on the weekends.
Some retail brokers still allow trading to happen on their platform, but here is the catch. They face mainly two challenges:
A. They don't have options to hedge against since the banks and other institutions are closed for business.
B. Since there is no liquidity, the retail broker won't be able to offer tight spreads.
These are two main issues retail traders face over the weekends.
Apart from the weekends, the foreign exchange market is open 24 hours five days a week Mondays through Fridays for business.
It is advisable not to conduct forex trading on weekends as the major financial institutions (Big banks, government, large corporations, and so on) do not work.