Final Thoughts. LMAX and IG Markets are just two brokers that have been offering weekend trading to clients that feel the need to hedge their positions even when the market is officially closed. This raises a few questions which my article will answer: What are weekend Forex trading conditions like? What other instruments are tradable over the weekend?

Is weekend trading safe? Cryptocurrency Spill-Over Effects The origin of retail weekend trading is quite recent and is entirely due to the success of cryptocurrencies. Bitcoin Price Chart — Weekends Highlighted In fact, weekends are seen as a crucial time for cryptocurrency traders.

The popularity of weekend trading in cryptocurrencies stimulated some brokers into offer weekend trading on Forex and other instruments to their clients. Another reason why weekend trading might be desirable is the capacity to act following important, unscheduled geopolitical news or developments that would ordinarily cause a gap open on Sunday evening when the Forex market opens.

To sum up: the world is interconnected, and money never sleeps. Forex Trading Hours and the Weekend Before talking about trading over the weekend, let us just review the official open to close times for various markets. Obviously, different markets have different open market hours. The cash session is when there is the deepest liquidity and most major players trade during these hours.

For example, open market hours of the New York Stock Exchange and NASDAQ for regular stocks is between a. and 4 p. There are also after-market trading hours 4 p. Mon-Fri , but there are usually higher trading costs and less favourable execution prices. Similarly, the German Dax cash session is active from 9AM CET to PM CET Mon-Fri.

Forex trading hours are different. The Forex market is open 24 hours a day, but only from Sunday at Everything looks peachy on Friday around 5 PM when the markets shut down. Almost immediately after, though, terrible news gets leaked and things only get worse and worse through the evening and into Saturday.

By Sunday afternoon things are really reaching a fever pitch. You can almost see the sharks in the water. When the bell opens on Sunday at 5 PM EST things can get all kinds of crazy — all because of news that broke when you were prohibited from making moves on the Forex market at all. The most unfortunate thing about these kinds of gaps occurring, though, is that they are almost always unpredictable. You never really know when the next big bombshell is going to drop that shakes things up completely.

Some people are going to be able to ride out pretty much any storm, no matter how rough things get. Other folks are going to get real spooked the moment that it looks like the tailwinds have turned against them. Day traders, though, are going to want to liquidate their position on a pretty regular basis like every day.

Swing traders , on the other hand, are perfectly suited and better prepared for these kinds of changes and trends. Most markets are closed but some do remain trading out of hours. Although, over the weekend, you do not have direct access to these markets. Basically, your weekend contract on the DAX40 will then become a regular DAX40 contract if you keep it open over the weekend.

Most traders that take advantage of weekend trading do so to either hedge a position they made during the week OR when they expect a high impact news announcement to come out over the weekend.

Although the weekend is a great time to take a break and enjoy some family time, it is also the time when cryptocurrency prices tend to move the most. This is because there are fewer traders and fewer orders being placed, and so the market is more volatile.

The only reason why you would really look to trade over the weekend is if you were to expect big news to come out over the weekend. Although, this is unlikely. Brokers that offer weekend trading to their clients also charge much wider spreads than weekday spreads.

Is it really worth trading? Due to the nature of weekend trading, brokers that offer this provide limited markets so they can manage their risk easier. After all, the brokers also have limited staff on over the weekend too! Because the demand for weekend trading is low, not many brokers offer this. If you are obsessed with the markets like a true pro is, then you want to be loading up your terminal to review your key trading levels such as supply and demand levels at a weekly and daily view — as well as cleaning up your charts.

You want to prep the week ahead with key trading data that will come out and you want to re-evaluate your trading bias by reviewing the Commitment of Traders Report.

More often than not, your trades are going to close out from either your stop loss or target being hit. However, there is the odd occasion where you will need to make a decision on whether you should exit a trade or hold onto it. Holding a trade over the weekend is one of those difficult scenarios where you will have to make such a decision. This question is one I receive quite a lot and in this post I am going to break down the process I go through.

Before we dive in, you need to know that there is no single answer — your judgement is going to be the key to unlocking the answer. Price action thrives from flexibility and it applies to this topic as well.

There are two distinct sets of questions that you should run through when tackling this problem. The first set of questions analyse the trade itself. Ask yourself these questions:.

If you are on a lower time frame, you are less likely to hold your trade over the weekend for the same reasons. If, however, you are trading on the daily, weekly, or monthly, your answer to holding the trade is one step closer toward being a yes. There are more questions to ask. Ask yourself what the overall trend is for the pair you are trading. This is extremely relevant because if you are going against the trend you are taking on more risk.

Often enough this gap will be in favour of the trend. Obviously this is not guaranteed but in regards to managing your risk, it is an important consideration. You are opening yourself up to more risk by holding a trade over the weekend that goes against the overall trend. If you are already in the negative with your trade it is best to not hold it over the weekend.

Cut your losses and move onto the next trade! Now, if price is close to your target you should also look to close the trade. One of the key lessons I try to teach is to not let greed manage your trades. If price has been consistently moving toward your target and is with the trend, you can look to hold it over the weekend.

Your risk of price going against you is reduced in this scenario. Practice makes perfect with this stuff though — each trade will have different factors that influence your decision. This is more common sense than anything else. Any big news events are something you should be aware of trading through.

Combine that with a weekend and you can get yourself into a tricky situation. All of these questions together give you an idea of the State of the Trade that will help you make the best informed decision that you can.

Your judgement as a trader will be pivotal when deciding to hold trades over the weekend. Logging the data will be helpful! But wait — there are still a few more questions you need to ask yourself….

Alright, so you have looked at the trade and analysed it thoroughly. These are all related to and affect your trading psychology. They are the last checks you make before you make a decision on holding a trade over the weekend. Ask yourself:. The first question is crucial to your success with holding trades. Have you ever held a trade over the weekend and if you have, what do your previous results say?

If you have never held a trade over a weekend, try it out on a demo account. Collecting data in your journal will give you peace of mind and confidence when trying to decide on holding a trade. You can still use your live account if you wish — just be certain to log the data so that you can check out your results when you come up against the same dilemma!

If you are stressed by holding trades then you should practice first on a demo account. Your trading psychology is something you need to dedicate time to improving. Just try a few holds on a demo account first if need be! I have spent a lot of my time teaching the importance of not letting greed dictate your trading. More often than not, it will cause you to lose trades and this is no exception.

If you are currently at a 3 RR and want to get to 4 RR, take a moment to ask yourself whether you are being greedy. The weekend movement can completely wipe out profits. If you let your greed control your weekend trades you are playing a dangerous game.

But if you can truthfully say that you are not holding a trade for greedy reasons, you are in a great position! So, that sums up the questions I ask when I look to hold trades over the weekend. Flexibility and judgement are going to play a big part in your decision making with this.

Each trade is going to be different, as well as the external influences such as news or speeches. I definitely encourage you all to try holding some trades over the weekend.

Practice really does help with this area of trading. The earlier you start, the easier and more profitable you will make it for yourself in the long run! Open main menu. Strategies Basics Strategy Forex Mastermind Funding Articles Clock Chatroom. Log in. Close menu. State of the Trade The first set of questions analyse the trade itself. Ask yourself these questions: What kind of trader am I?

What is the overall trend? Where is price in relation to my stop loss and target profit? Is there any big news over the weekend? What Kind of Trader Are You? The first question is a simple yet vital one. What is the Overall Trend? Context is important though. So I often find myself asking that question alongside the next one… Where is price in relation to my Stop Loss and my Target?

The sweet spot with these questions is your judgement of the trade and the state it is in. One of those will be news. Is There Big News Over the Weekend? But wait — there are still a few more questions you need to ask yourself… State of the Mind Alright, so you have looked at the trade and analysed it thoroughly. Ask yourself: Have I got data to look back on in my trading journal? How does holding a trade over the weekend affect my trading psychology?

Am I being greedy? Do I Have Data in my Trading Journal? How Does Holding a Trade Affect My Psychology? The second question is much more personal to yourself and your trading psychology.

Am I Being Greedy? The last question is the most important. You have to be critical of yourself because no one else can do it for you in trading.

These are all related to and affect your trading psychology. You may lose all your capital. I often cancel all stop losses on open positions if I have decided it is prudent to hold them and then re-establish them the following week once the spread starts to narrow again. For example, when we fund forex traders , we set objectives in terms of drawdown and position size. Full details are in our Cookie Policy AGREE.

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