Friday is the end of the working week for traders as well. Ahead is the weekend and rest, after which again Monday comes, and the new working week herewith. Many traders are concerned about the question “What to expect from the new Monday?” What happens over the weekend? Should I leave trades open on Friday or close them? Let’s find out answers to these questions.
Trading on Forex on Friday is possible and necessary, but at the same time, you should remember some issues that can protect your deposit from unwanted losses. You can also leave trades open for the weekend, but consider some points that we will discuss next.
Friday Market Closing
The first thing to consider when trading Forex on Friday is the closing time of the Forex market. The exact time of your terminal can be found in the Market Watch window.
In most cases, trading ends when this watch shows 23:59. Some brokers close trades an hour or two hours before midnight. You can find out the exact information about closing a week session with your broker from its website or ask a support team about this.
The fear of gap
You probably know the fact that news affects trading in the foreign exchange market. But Forex news on Friday is another story. Some events that take place on this day can shock the market. For example, when trading in the US dollar, you should familiarise yourself with the news calendar, and especially pay attention to the time of 15:30 (GMT+3).
In the USA, at this time, important news is released, in particular, on the first Friday of the month – NonFarm Payrolls: the number of new jobs in the non-farm sectors of the economy over the past month. In the calendar, such news is marked with three red dots (or other icons). It is better not to trade on this day, and it is recommended to close open positions before such news.
Many traders are afraid that due to the release of important news or for other reasons, the market on Monday will open with a big gap, which in turn will adversely affect the balance. Fear of the traditional gap at the beginning of the trading week makes the trader take a decision, at least on Friday evening. The price gap sometimes amounts to several dozen points, which can critically influence open deals. Professionals with large deposits that trade in long-term, usually do not pay attention to such trifles, a gap of 30-50 points is perceived as market noise.
When should I leave trades open for the weekend?
In order not to be afraid of gaps, it is worthwhile to work out the medium-term tactics of your actions on small amounts, for example, on the Standard or Mini account. We also have a few tips on how not to be afraid of gaps and leave deals open for the weekend:
- always set Stop Loss and Take Profit;
- close only profitable deals on Friday, fix the rest at the opening of the new week;
- close orders only by the signal of your trading system and, if necessary, leave open for the weekend.
The last option seems the most reasonable if there is a floating loss on current transactions, but you are sure that according to the TS they should go into profit. If current deals are in profit, but the price has not reached Take Profit, then it is better to close them.
We need to assess the fundamental situation on the weekend: business meetings can take place, comments from political and financial figures are possible, statistics may be released (for example, in China) – these factors, as well as unpredictable events and news, form a price gap on Monday.
In any case, a steady income in the network depends on your psychology, confidence in your strategy and ability to trade in the market. Instead, do not trade in situations that you can not predict.