FX can be traded 24 hours a day on weekdays. However, the market closes on weekends, so trading cannot be conducted. This time, we will explain “until what time FX trading is possible on Fridays.” We have also summarized irregular trading hours during daylight saving time, winter time, Christmas, and New Year’s Day. Please also refer to points to keep in mind for Friday trading and recommended trading strategies.

Until what time can FX be traded on Fridays?

When engaging in FX trading, it is crucial to understand the trading hours. Failing to do so may lead to strategic mistakes or unexpected losses, so be cautious. Here, we will explain until what time trading is possible on Fridays.

Fridays allow 24-hour trading

To begin with the conclusion, FX trading is available 24 hours on Fridays. Generally, it is said that FX trading is only possible on weekdays from Monday to Friday, but in reality, it is possible until early Saturday morning. This is because the market typically closes around 6:00 a.m. on Saturday mornings.

The exact market closing time varies depending on the FX broker, so please check the official website of your broker for detailed information.

Market closing times differ between daylight saving time and standard time

The FX market closing time is not the same throughout the year and varies slightly depending on the season. It is often referred to as daylight saving time and standard time, so keep this in mind. Daylight saving time runs from early March to early November. During this period, the market typically closes between 5:30 a.m. and 6:00 a.m. on Saturday mornings. Standard time runs from early November to early March. During this period, the market typically closes between 6:30 a.m. and 7:00 a.m. on Saturday mornings.

Standard time is considered the default, and during the daylight saving time season, the market opens and closes one hour earlier than the standard time. For specific dates and times, please check the official website of your FX broker.

Christmas may have shortened trading hours

In Japan, December 25th, Christmas, is culturally recognized but not a public holiday. However, in many Western countries, it is a public holiday. Markets are also closed, and many FX brokers tend to shorten trading hours, so be aware.

Additionally, on Christmas Day, major markets such as the London and New York markets are closed, significantly reducing trading liquidity. Sudden price movements are more likely to occur throughout the day, so caution is advised. The market carries slightly higher risks than usual. If Christmas falls on a Friday, ensure you manage risks more thoroughly when trading.

Trading is not possible on New Year’s Day

January 1st, New Year’s Day, is recognized as a public holiday worldwide. All markets are closed, and trading is not possible, so be aware. Around New Year’s Day, trading liquidity also significantly decreases, and sudden price movements are more likely to occur. Spreads are also prone to widening, so exercise caution when trading.

For FX beginners who are not yet accustomed to trading, it is recommended to refrain from trading altogether during this time.

Characteristics of the FX market formed on Fridays

The FX market formed on Fridays has characteristics such as differing movements between the first and second halves of the day. It is also prone to short-term significant trends and is easily influenced by economic indicators. Here, we will explain the characteristics of the FX market formed on Fridays.

The first half tends to see more volatile movements

Although trading is available for 24 hours on Fridays, the market closes early the following morning. In preparation for this, many traders tend to adjust their positions during the first half of Friday. As new positions are added or unnecessary ones are closed, trading activity increases, making the market more volatile. Irregular price movements are more likely to occur, so exercise caution when trading.

The second half tends to become very subdued

The latter half of Friday generally refers to the period after 9:00 p.m. During this time, position adjustments are largely completed, and traders begin withdrawing from the market to prepare for the next week. As a result, market movements tend to become relatively subdued. Instead of trends, range-bound markets are more likely to form. This characteristic makes box trading a potentially profitable strategy.

However, as trading liquidity decreases, sudden price movements can occur more easily. False signals are also more likely, so be cautious when trading.

Short-term significant trends are more likely to occur

Fridays, when new orders and position settlement orders tend to concentrate, often see increased trading activity. When a large number of orders are placed at once, trends are more likely to form, so keep a close eye on the market.

It is important to note that trends formed on Fridays are often short-term. It is not uncommon for trends to reverse within a few minutes to a few hours. While this carries some risk, those who can ride the trend have a high chance of securing substantial profits, so risk-tolerant individuals may want to give it a try.

Easily influenced by economic indicators

After 6:00 p.m. on Fridays, many economic indicators are often released. However, in the latter half of Friday, many traders have already withdrawn from the market, leading to a less overheated trading environment compared to Monday through Thursday. As a result, the market tends to end the day influenced by the content of economic indicators, so be mindful of this.

The schedule for economic indicators is announced in advance. Check the schedule on Friday morning to see if there are any high-impact economic indicators or a large number of releases scheduled for the day.

Things FX beginners should keep in mind when trading on Fridays.

When FX beginners trade on Fridays, they should focus on position adjustments. It is also important to set smaller lot sizes and prioritize short-term trading. Here, we will explain what FX beginners should keep in mind when trading on Fridays.

Adjust your positions

Although FX trading is technically available until early Saturday morning, meaningful trading is effectively limited to Friday. Therefore, aggressive trading on Fridays is not recommended. FX beginners should focus on defense and organize their positions.

For positions with unrealized profits, it is advisable to close them and secure your gains, even if the amount is not significant. For positions with unrealized losses, decide whether to cut losses or carry them over to the next week based on your financial situation and strategy.

Set smaller lot sizes

Compared to the market from Monday to Thursday, the Friday market tends to exhibit irregular movements. Even professional traders can be caught off guard by unexpected price action. For FX beginners, dealing with such movements can be challenging. To minimize risk, it is recommended to set smaller lot sizes. The suggested trading lot size is less than half of your usual size.

Lower the leverage

With overseas FX platforms, you can apply very high leverage, which is attractive. However, on Fridays, it is better to apply lower leverage to reduce the potential damage from trading errors.

For FX beginners, leverage of up to 3x is recommended. With this level of leverage, unless you set extremely large lot sizes, losses can be kept to About $1 to $10.

Focus on short-term trading

There are two main trading styles in FX: long-term trading and short-term trading. For FX beginners trading on Fridays, short-term trading is the better choice. Short-term trading is more adaptable to irregular price movements. Additionally, since short-term trading focuses on shorter timeframes, the risk of incurring significant losses due to a failed strategy is lower.

Pay extra attention to stop-loss levels

If you are trading on Fridays, placing stop-loss orders is an absolute must. At the same time, pay more attention to your stop-loss levels than usual. Compared to the market from Monday to Thursday, the Friday market is more volatile. There are days when trend reversals occur frequently, and the initially planned stop-loss level may become inappropriate over time.

Therefore, regularly monitor market trends and trading intensity, and adjust your stop-loss levels as necessary based on the situation.

Trading strategies that work well with Friday FX.

If you are trading FX on Fridays, try using short-term trend-following strategies. Scalping and counter-trend trading after sharp price spikes or drops are also recommended. Here, we will introduce several trading strategies that work well with FX on Fridays.

Short-term trend following

Trend following is the simplest trading strategy where you enter trades in line with the market trend. Since Fridays are prone to volatile markets, combine this strategy with short-term trading for flexibility. Here’s an example of how to execute this strategy:

1. Open the chart and check the current trend.
2. Enter a trade in the same direction as the trend during a pullback or retracement.
3. Close the trade and take profits once sufficient gains are achieved.

Scalping

Scalping is a trading strategy where trades are opened and closed within seconds or tens of seconds. Since it involves shorter trading times than day trading, it can be relatively safe even on volatile Fridays. Here’s an example of how to execute scalping:

1. Open the 1-minute chart.
2. Perform trend-following when a large bullish or bearish candle appears.
3. Close the trade once you achieve a profit of 1 to 3 pips.

Counter-trend trading after sharp price moves

In Friday markets, charts occasionally experience sharp spikes or drops. After these moves, the chart tends to rebound, so aim for those moments. Here’s how to execute this strategy:

1. Confirm that the market has spiked sharply.
2. Enter a sell trade near the peak.
3. Close the trade quickly once you achieve a small profit.

Counter-trend trading after sharp price moves is a slightly riskier strategy. Aim for small profits rather than large ones, and execute both closing and stop-loss orders swiftly.

Counter-trend trading against the weekly trend

In FX, there is a weekly trend that forms over the course of a week. For example, if the market rises from March 1st to March 5th, it is considered an upward trend. On Fridays, many traders close their positions, causing the market to often move in the opposite direction of the weekly trend.

Take advantage of this by executing counter-trend trades. In this example, entering a sell trade would be a good choice. However, as with the previous strategy, counter-trend trading carries some risk. Pay extra attention to risk management and asset management.

The benefits of FX beginners choosing not to trade on Fridays

So far, we’ve discussed trading on Fridays, but intentionally choosing not to trade can also be a good option. This choice offers the following benefits:

– You can engage in FX with no risk.
– You can focus on gaining knowledge.
– You have time to carefully plan strategies for the following week.

The biggest benefit is being able to engage in FX without any risk. Simply observing the market without investing money can still teach you a lot. You can also simulate trading strategies as if you were investing real money. Use your time effectively to explore the best trading strategies for Fridays.

Summary

This time, we explained “how late you can trade on Fridays.” FX trading is available 24 hours on Fridays, with the market closing around 6:00 a.m. on Saturday. However, Friday markets tend to exhibit irregular movements. Sharp price spikes and drops are not uncommon, so ensure thorough risk and asset management when trading.