When making foreign exchange (FX) transactions during the week, currency markets are open and continuously updated with live rates from global trading activity. However, during the weekends, currency markets close, meaning there is no new trading data to determine accurate FX rates in real-time.
Since the market is closed, financial institutions and FX providers face higher risks due to potential changes in currency values by the time the markets reopen. To manage this risk, an additional margin is applied to FX transactions on weekends. This margin ensures that any potential fluctuations when the market resumes trading are covered, protecting both the service provider and the client from unexpected losses.
Key reasons for the weekend margin:
Market closure: No real-time currency trading occurs over the weekend, leading to fixed rates.
Risk management: Providers need to account for potential currency fluctuations when markets reopen.
By applying an extra margin of 0.5% on weekends, amnis can continue offering currency exchange services even when the markets are closed, while safeguarding against unforeseen market movements. This allows businesses to enjoy the convenience of trading over the weekend, without waiting for the markets to reopen on Monday.
Thus, with amnis you can execute FX transactions at any time, ensuring smooth operations and avoiding potential delays. This flexibility empowers companies to stay agile and responsive, even outside of standard trading hours.