Why does the forex market close during the weekends.Why isn#039;t it open 24/7? ? -

Huh, right. That s what every Forex beginner hears about the market. They tell you that you can trade Forex and earn money 24/7 - the beauty of currency trading. Yes, you can, IF you keep you look to trade on daily, weekly and monthly basis which means you ll leave your trades open for an extended period of time. No, if you look to trade short-term - be in and out of the market withing several hours or less. Majority of Forex brokers won t provide you an opportunity (in one or another way) to trade: Option #1 - they won t show weekend data on the charts. You can t trade without seeing prices. Option#2 - they won t allow you to open any new orders -the platform won t accept any requests. Option#3 - they will significantly increase spreads, making it unprofitable to open a new order. The forex market is open 24 hours a day, 5.5 days a week - as a market closes in one time zone, another is opening in a different time zone. This allows any trader in any time zone to trade forex any time, day or night. In forex, there is no need for you wait for the market to open. The foreign exchange market is not traded on a regulated exchange like stocks and commodities. Rather, the market consists of a network of financial institutions and retail trading brokers where each has their own individual hours of operation. Since most participants trade between the hours of 8:00 a.m. and 4:00 p.m. in their local time zone, these times are used as the market open and close times, respectively. It s not a market - just people trading wit heach other. You can see exactly how forex works with the free book that s available at http://www.forexfromscratch.com - just type your name and email into the boxes and they email you the book. It s a beginners guide to forex trading and is a quot;must-readquot; if you don t want to lose any money. Normal forex trading hours are 06:00 Monday Sydney time until 17:00 Friday New York time. In most cases, traders can trade Forex beyond the normal trading hours. However, trading in such hours, if available, usually involves higher spreads. You may check this site for more info. The banks are closed.