The forex market is a 24-hour marketplace, and trading sessions are divided into four main sessions – Sydney, Tokyo, London, and New York. As a result, traders from all over the world participate in the forex market at all times, and it is vital to know when the trading week ends in forex.
The MetaTrader 4 (MT4) trading platform is widely used among forex traders, and it offers advanced charting and trading tools. The MT4 trading platform is also known for its user-friendly interface and straightforward navigation. However, many traders often wonder when the MT4 week ends in forex.
The MT4 trading week begins on Sunday at 22:00 GMT and ends on Friday at 21:59 GMT. During this time, traders can trade forex, commodities, indices, and other financial instruments. However, there are some exceptions to this rule, and traders should consider the following factors when trading on the MT4 platform:
Weekend Gaps
One of the most significant risks associated with trading forex is weekend gaps. Weekend gaps occur when the forex market is closed over the weekend, and significant events occur that affect the market’s opening price on Monday. These gaps can cause traders to experience significant losses due to the sudden price movements.
Traders can reduce the risk of weekend gaps by using stop-loss orders, limiting their exposure to the market, and monitoring news events over the weekend that may affect the market’s opening price on Monday.
Trading Hours
The forex market operates 24 hours a day, five days a week, and traders can trade during any of the four major trading sessions. However, not all forex pairs are available for trading at all times. Some forex pairs may have limited trading hours, and traders should be aware of these restrictions when trading on the MT4 platform.
For example, the AUD/JPY currency pair has limited trading hours, and traders should avoid trading this pair during the Asian session, as liquidity is low, and spreads are high.
Liquidity
Liquidity refers to the ability to buy or sell a financial instrument without affecting its price significantly. The forex market is the most liquid market globally, with an average daily trading volume of over $5 trillion. However, liquidity varies throughout the trading week, and traders should be aware of these variations when trading on the MT4 platform.
Liquidity is highest during the London and New York sessions, and traders should consider trading during these sessions for the most favorable trading conditions. However, traders should also be aware of the risks associated with trading during volatile market conditions, such as slippage and execution delays.
Conclusion
In conclusion, the MT4 trading week ends on Friday at 21:59 GMT, and traders should be aware of the risks associated with weekend gaps, limited trading hours, and liquidity variations. Traders should also consider using risk management tools, such as stop-loss orders, to reduce their exposure to the market and monitor news events that may affect the market’s opening price on Monday. By understanding these factors, traders can make informed trading decisions and reduce the risks associated with trading forex on the MT4 platform.
