Weekend Trading: Opportunities and Risks

Weekend Trading: Opportunities and Risks

What Trading Markets Are Open on Weekends?

Many traders avoid trading on the weekend due to a lack of time to follow market news and trades. However, if you trade with strategies that are not affected by trading volume and low liquidity, then weekends can offer you the chance to make profits.

Brokers such as IG now offer weekend markets on popular assets like GBPUSD and the FTSE 100. These markets are separate from their weekday counterparts and will be priced based on volatility, news and liquidity.

Stocks

There are some stock markets open on the weekend, but they tend to have lower volume and higher transaction costs. This can make trading these markets more risky, especially if you’re using a day trading strategy.

Trading on weekends is not recommended for beginners. The lack of large market participants means that the bid-ask spread can be very wide. This can lead to phantom gaps, which are created when a few traders invest in the same direction for no discernible reason. These gaps can then cause the market to spike.

However, if you’re a swing or position trader who holds their positions for days or weeks at a time, then trading on the weekend may be beneficial. Also, traders who work full-time during the weekdays might find weekends a good opportunity to study market trends without any distractions. Forex and cryptocurrencies are always available on the weekend, but there are some limitations to this trading.

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