Are Forex markets open on weekends?
The Forex market is open for business 24 hours Monday through Friday. On weekends most exchanges are closed for trading, which means you can't trade forex, but you can trade cryptocurrencies. You will find more information about this on cityfxbroker.com.
The universal setup of foreign currency trading market is such that there are always brokers across the globe who are executing and satisfying demands for a specific Currency at all times. However, on weekends, most of these trading desks are closed.
In simple terms, it means that more than $4.0 trillion worth of liquidity will not exist during the weekends. This is because most bank's trading desks that execute the trades are shut down.
Some retail brokers still allow trades to happen on their platforms, and these are the problems they are likely to face:
A. If the retail broker is acting as a market maker, they will not have options to hedge the risk because the banks and other financial institutions are absent from the trading desk.
B. Due to the absence of liquidity, the broker cannot offer tight spreads.
Remember, liquidity is inversely proportional to the spread of a currency pair.
To learn more about this ask cityfxbroker.com