Carrying FX Positions Over the Weekend: Risks & Solutions

1. Introduction

In FX (foreign exchange margin trading), holding positions across the weekend carries unique risks. Many traders have probably experienced the dilemma of whether to close positions by Friday night or to carry them over. There are also many cases where traders inadvertently carried positions over the weekend.

Since the forex market is closed over the weekend, news or geopolitical events that occur on Saturday or Sunday can affect the market at the start of the week. This can create a large price gap—known as a “gap opening”—between Friday’s closing price and Monday’s opening price, potentially leading to unexpected losses for traders.

This article explains the risks of carrying positions over the weekend in FX, the countermeasures, and the precautions to take beforehand in a way that even beginners can understand. It aims to help FX beginners and intermediate traders make confident decisions about weekend trading.

2. Can FX be traded on weekends?

Trading Hours of the Global FX Market

FX trading is often perceived as 24‑hour, but in reality, the trading hours are from early Monday morning to early Saturday morning. This is because the major global financial markets (Sydney, Tokyo, London, New York) open sequentially, operating 24 hours.

However, from around 6 a.m. Saturday to 7 a.m. Monday in Japan time, all markets are closed, creating a ‘weekend break period’ during which no trading is possible.

Reasons Why Trading Is Not Possible on Weekends

The FX market is not an exchange‑traded market like the stock market, but is based on interbank market relative trading (OTC). Therefore, when financial institutions and brokers stop operations over the weekend, prices are not updated and no trades are executed at all.

Also, global news or sudden events that occur on weekends tend to be reflected collectively in the market at the start of the week, causing ‘week‑start volatility (gap opening)’.

Some Exceptions and Points to Note

Some overseas brokers and cryptocurrency exchanges offer services that appear to allow trading on weekends, but this is simply a system that simulates prices and executes trades separate from the actual FX market. Therefore, the price behavior and risks differ from regular FX, so caution is required.

3. Risks of Carrying Positions Over the Weekend

Occurrence of a Gap (Gap Opening)

The biggest risk of carrying a position over the weekend is the price gap at the start of the week, known as a gap opening. For example, even if Friday’s closing price is 1 dollar = 150 yen, the opening price on Monday might suddenly be 148 yen.

Such price differences arise when the impacts of economic indicators, geopolitical risks, regime changes, disasters, etc., announced over the weekend are collectively reflected at the start of the week. In particular, in the forex market, if significant events occur over the weekend, there is a strong tendency to react sharply in the early morning on Monday, making carried positions carry substantial risk.

Risk of a Loss Cut

If you carry a position over the weekend and a gap opening moves in the opposite direction of your expectation, there is a possibility that losses will rapidly expand and a loss cut will be triggered. Especially if the margin maintenance ratio is already tight, price movements at the start of the week can cause even stop‑loss orders to slip, resulting in losses greater than anticipated.

Additionally, immediately after a sharp price move, the market tends to become unstable, making slippage and execution delays more likely, so caution is needed.

Spread Expansion and Liquidity Decline

Immediately after the start of the week, the market has fewer participants, so there is a tendency for the spread (difference between bid and ask) to widen significantly. This increases the likelihood of executing at unfavorable prices during entry or exit, which can be a painful blow, especially for short‑term traders.

Also, during low‑liquidity periods, charts can become choppy and technical analysis may be less effective.

4. Weekend Carryover Benefits and Strategies

In FX, carrying positions over the weekend is often considered risky, but it is possible to enjoy benefits by using it strategically. Here, we explain the main advantages of weekend carryover and trading strategies that leverage it.

Earning Swap Points

Swap points (swap interest) are profits generated based on the interest rate differential between different currencies. This swap earned by holding a position is generally credited in a lump sum for three days on Thursday night (early Friday morning Japan time).

For traders engaging in carry trades—buying high‑interest currencies and selling low‑interest ones—crossing the weekend provides an opportunity to efficiently earn swap income. When engaging in medium‑to‑long‑term trading, carrying positions over the weekend may even be a given.

Continuing Positions in Long‑Term Trading Strategies

Traders who adopt a medium‑to‑long‑term position strategy based on weekly or monthly charts incorporate weekend price movements as part of their strategy. In such a style, it is important to avoid flailing over temporary fluctuations and to continue holding positions in line with a fundamentally‑based trading policy.

Especially when riding a long‑term trend, closing positions over the weekend carelessly can cause you to miss subsequent large profit opportunities.

Potential to Profit from Gap Openings

While a gap opening is a risk, it can also be leveraged as a chance. For example, if a major economic event is scheduled over the weekend and the market is expected to gap up, holding a long position through the weekend allows a strategy that targets large gap profits.

However, this is a highly risky approach, and without experience, analytical skill, and clear stop‑loss criteria, it can become a dangerous gamble. When holding a position, you must carefully assess whether the potential return justifies the risk.

5. How to Handle Carrying Over Positions Over the Weekend

The first thing to do is to quickly confirm the prices and market trends at the start of the week. Many FX brokers resume trading around 5-7 a.m. Japan time on Monday. Depending on the broker, spreads may be wide or execution strength may be low, so check both the chart and the spread.

Also, news and events that occurred over the weekend (economic indicators, statements by key figures, wars, disasters, etc.) should be quickly gathered from financial information sites and social media. This helps you understand market reactions and use them as material for the next decision.

Check Market Conditions Immediately at the Start of the Week

If a gap occurs and positions start in a state of unrealized loss or profit, you need to quickly decide on stop loss or take profit. The following approaches can be considered depending on the situation.

• When unrealized loss is large: Immediate stop loss is one option. It’s important not to delay the decision to prevent loss escalation.
• When there is unrealized profit: While identifying take-profit points, consider the possibility of a gap fill (a return in the opposite direction of the gap) and evaluate the timing for securing profits.

Also, if there is slippage or abnormal spread widening, it may normalize after a few minutes to a few dozen minutes, so avoiding forced immediate settlement can be a valid decision.

Reviewing Lot Size, Leverage, and Reflection

If you experienced situations like “I incurred a larger loss than expected” or “I felt significant stress”, you need to review your future risk management.

• Reduce lot size
• Thoroughly verify required margin and margin maintenance ratio
• Always set stop loss

These are good opportunities to review your trading style.

6. Risk Mitigation Before the Weekend

For FX traders, preparing and establishing habits to avoid carrying positions over the weekend is extremely important. Here we introduce specific risk management methods to implement before the weekend.

Organize Positions Before Friday Market Close

The simplest and most reliable method is to close all positions by Friday night. Especially if you focus on short-term trading, the benefit of carrying positions across the week is minimal, and to avoid loss risk from weekend uncertainties, it is ideal to make closing positions a habit.

Trading end times vary by broker, but around 5–6 a.m. Japan time on Saturday is a guideline. However, Friday night tends to see wider spreads, so try to close positions with ample time.

Pre-Check Economic Indicators and Events

If important economic indicators, key person statements, or meetings (G7, OPEC, central bank releases, etc.) are scheduled over the weekend, they could significantly impact the market.

Use reliable economic calendars (e.g., Investing.com, TradingView, FX broker-provided calendars, etc.) and at the Friday stage, identify whether weekend risk exists in advance. By reducing positions before the announcement, you can avoid losses from sudden volatility.

Use Stop Losses

If you cannot avoid carrying positions or deliberately hold them strategically, it is a rule of thumb to always set a stop loss (loss-cutting order).

However, note that when a gap opens, there is a possibility of a “slippage” where the stop loss price is bypassed and the order is executed. Therefore, operate in conjunction with risk reduction measures such as limiting lot size, based on the expected loss range.

Utilize Automatic Settlement and Reminder Settings

To prevent careless mistakes, it is also effective to use the trading platform’s “pending order” feature or smartphone reminder notifications. For example, setting an alarm at 10 p.m. on Friday or automatically closing when a specific rate is reached can make it easier to habitually follow your rules.

7. Effective Ways to Spend the Weekend

When the FX market is closed on weekends (Saturdays and Sundays), the time you cannot trade becomes a precious opportunity to focus on self‑improvement and strategy building. Rather than just resting, using it as a “preparation time” that leads to next week’s results can foster continuous skill growth. Here we introduce recommended ways for FX traders to spend the weekend.

Review Past Trades

To stabilize trade performance, self‑analysis is essential. With more time on weekends, review a week’s worth of trade history,

• Basis for entries and exits
• Reasons for profits / factors leading to losses
• Whether emotions influenced the situation

Recording these in a trade journal is recommended. Habitualizing this makes your trading tendencies and improvement points visible, leading to performance improvement in subsequent weeks.

Forecasting Next Week’s Market and Planning Strategy

Next, let’s conduct chart analysis and prepare a weekly strategy. Focus on weekly and daily charts,

• Current trend (upward / downward / range)
• Key resistance and support lines
• Fundamentals (economic indicators, interest rates, geopolitical risks, etc.)

Organizing these allows you to create a strategy map to prepare for next week’s trades.

Also, don’t forget to check the major economic events and key person statements scheduled at the start of the week. By pre‑thinking how you will position yourself in which currency pair against expected market moves, your decisions after trading starts will be smoother.

Acquiring FX Skills and Knowledge

Weekends with ample time are also ideal for deepening your FX knowledge and skills. Use the following learning methods.

• Reading books or e‑books
• Video courses on YouTube, Udemy, etc.
• Testing strategies via demo trading
• Delving into economic and financial news

Especially for beginners, being able to articulate “why I won” and “why I lost” significantly deepens market understanding. Consolidating what you study through output (notes or sharing on social media) is effective.

8. Frequently Asked Questions (FAQ)

Regarding carrying positions over the weekend in FX, many traders have similar concerns and questions. Here, we will address the most frequently asked questions and provide clear answers.

Q1: What happens to swap points when carrying positions over the weekend?

A: Swap points are generally awarded each business day, but it is common for positions held as of Wednesday to receive three days’ worth of swap points. This is because weekends are non‑trading days, so the adjustment is paid in full on Wednesday. Therefore, even if you hold a position across Friday, no additional swap points are awarded.

Q2: If a gap opening occurs, will a stop loss work?

A: In normal market conditions, a stop loss will work, but if a large gap opening occurs at the start of the week, it may execute beyond the specified price (slippage). Therefore, even with a stop loss in place, losses can exceed expectations. Limiting the lot size is also important for risk management.

Q3: Are there specific ways to avoid carrying positions over the weekend?

A: Yes, the following methods are effective.

• Set alarms or reminders on Friday night.
• Check news and indicator schedules before the weekend.
• Place settlement orders (limit or stop orders) in advance.
• Incorporate automatic settlement rules into your trading style.

Especially for beginners, making it a rule makes it easier to habit‑form.

Q4: How can I practice or learn FX on weekends?

A: While you cannot trade on weekends, you can sharpen your skills through demo trading and backtesting charts. Additionally, gathering and sharing information through books, video courses, blog posts, and social media is also effective.

Furthermore, by recording and analyzing your trade notes, you can objectively review your trades. Using weekend time effectively directly leads to continuous skill improvement.

9. Summary

The “weekend position rollover” in FX is a critical situation that requires careful judgment for both beginners and experienced traders. In this article, we have extensively explained the risks and countermeasures when you inadvertently roll over, the benefits of rolling over strategically, and guidelines for actions before and after the weekend.

Reviewing the main points, they are as follows:

• FX trading is halted on weekends (Saturday and Sunday), and events that occur during that time may be reflected as a “gap opening” at the start of the week.
• Risks of rollover include stop‑loss, spread widening, liquidity decline, etc., and beginners need to be especially careful.
• On the other hand, rollovers can be effective in swap hunting or medium‑to‑long‑term strategies, so judgment according to trading style is important.
• Even if you inadvertently roll over, quick assessment of the situation at the start of the week and calm response are key.
• Settling positions by Friday, checking economic indicators in advance, etc., taking preventive measures is the foundation of risk avoidance.
• Although trading is not possible on weekends, using the time for reviewing past trades and learning becomes a valuable opportunity to improve skills.

Ultimately, what matters most is “knowing and controlling risk.” Only by doing so can you build the foundation for consistently winning in FX.

Let’s make the weekend, a period when the market is closed, not just a “waiting time,” but an effective time to set up future wins.

Reference Sites

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