Why is the forex market closed during weekends and holidays?

3 answers

• Mar 25, 2022 · 3 years ago
  The forex market is closed during weekends and holidays primarily because it operates on a global scale. As different countries have different time zones, it is necessary to have a period of closure to ensure fair trading opportunities for all participants. Additionally, market liquidity tends to be lower during these times, which can lead to increased volatility and higher spreads. By closing the market during weekends and holidays, it allows participants to take a break and reduces the risk of unexpected market movements.
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• Mar 25, 2022 · 3 years ago
  The forex market is closed during weekends and holidays to prevent any major disruptions or price gaps when the market reopens. Since the forex market operates 24 hours a day, 5 days a week, it is important to have a period of closure to allow for maintenance and updates. This also gives traders and investors a chance to rest and recharge before the market opens again. It's a way to ensure stability and maintain the integrity of the market.
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• Mar 25, 2022 · 3 years ago
  The forex market is closed during weekends and holidays to protect traders and investors from potential risks. During these times, there may be lower trading volumes and liquidity, which can result in wider spreads and increased slippage. By closing the market, it helps to minimize the impact of any unexpected news or events that may occur during weekends and holidays. It also allows market participants to spend time with their families and enjoy their holidays without worrying about market movements.
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