The forex market is closed on weekends for several reasons, including:
To prevent traders from making impulsive and irrational trading decisions. The forex market is known for its high volatility and unpredictability, which can lead to traders making rash decisions that they later regret.
To allow for market consolidation. This helps to reduce volatility and create more favourable trading conditions for the following week.
To allow for maintenance and upgrades of trading platforms and systems. By closing the market on weekends, brokers and other market participants are able to perform these tasks without disrupting trading.
To allow for settlement of trades. This process involves transferring funds between banks and other financial institutions, which can take time.
These reasons help to protect traders from making impulsive decisions, allow the market to consolidate, and facilitate the maintenance and settlement of trades.