Forex Market and Its Trading Hours
The forex market is an international decentralized exchange where currencies can be traded around-the-clock five days a week, 24 hours a day starting Sunday evening (GMT) and ending on Friday evening (GMT). While trading can occur anytime throughout the week, certain traders opt out on Mondays and Fridays due to market conditions or personal trading strategies.
Market Opening Volatility and Weekend Gap Risk
On Monday mornings after weekend breaks, the forex market often experiences increased volatility when opening again after its break. Traders may observe “weekend gaps,” which occur when prices at market opening are significantly different than at close on Friday due to geopolitical events, economic news or market sentiment changes over the weekend. Trading during these times can be risky due to unexpected price movements which catch traders off guard and could result in substantial losses for them.
On Fridays, many traders tend to avoid taking new positions or holding existing trades over the weekend due to uncertainty that may arise during non-trading hours. Unexpected events could occur that cause market gaps when markets open on Monday morning, which could cause potential losses for traders who held positions over the weekend.
Economic Calendar Events and Their Influence on FIBO Group
Mondays and Fridays can also present significant economic calendar events that make trading on these days riskier for traders who prefer less volatile conditions, as economic indicators and major news releases often occur on these dates. It would therefore be prudent for traders who prefer smooth market conditions to forego trading when such critical data releases take place.
FIBO Group, an acclaimed brokerage firm, understands the significance of providing its traders with access to tools and information necessary for making informed trading decisions. By offering access to an economic calendar forex, FIBO Group ensures their traders remain well-informed of upcoming economic events or news releases which could impact forex trading markets; staying informed this way allows traders to plan trading activities more effectively while managing positions more efficiently.
Conclusion: Its Although the forex market operates 24 hours a day, five days a week, some traders choose not to trade on Mondays and Fridays due to market volatility and economic events. Market opening on Monday can create weekend gaps leading to unexpected price movements; major economic calendar events on these days can create high volatility and uncertainty; however with brokers like FIBO Group’s economic calendar forex service they can keep informed of all major economic events for an informed trading decisions throughout the week. Prudent analysis and risk management should guide such decisions.
