Forex trading is a global phenomenon that operates 24 hours a day, five days a week. It is the largest financial market in the world, with a daily turnover of around $5 trillion. The forex market is open from Sunday at 5 pm EST until Friday at 5 pm EST. However, this schedule varies depending on the time zone and the location of the traders.
In the United States, the time zone that is used for forex trading is Eastern Standard Time (EST). This time zone is based on the time in New York City, which is the financial capital of the world. Therefore, when we talk about forex trading hours in the US, we refer to EST.
The forex market in EST opens on Sunday at 5 pm and closes on Friday at 5 pm. This is because the forex market is global, and it operates in different time zones. When the trading day in the US ends, it is just beginning in Asia, and when it ends in Asia, it is just beginning in Europe. This means that the forex market is open 24 hours a day from Monday to Friday, with a one-hour break each day from 5 pm to 6 pm EST.
However, it is important to note that the forex market is not open 24 hours a day on weekends. It is closed on Saturdays and opens on Sundays at 5 pm EST. This is because the forex market operates on a 24-hour basis, and there are no breaks during the week. Therefore, when the trading day ends on Friday at 5 pm EST, it does not resume until Sunday at 5 pm EST.
One important thing to note is that the forex market is not a single entity. Instead, it is a network of exchanges, brokers, and banks that trade currencies with each other. Each of these entities has its own trading hours, which may differ from the forex market trading hours. For example, some brokers may offer extended trading hours during the week or on weekends.
Another factor that affects the forex market trading hours is daylight saving time. This is a system that is used to adjust the clocks in different time zones to match the changing seasons. During daylight saving time, the forex market trading hours may be shifted by one hour. For example, during daylight saving time in the US, the forex market opens on Sunday at 4 pm EST instead of 5 pm EST.
In conclusion, the forex market is a 24-hour market that operates from Sunday at 5 pm EST until Friday at 5 pm EST. However, this schedule may vary depending on the time zone and the location of the traders. It is important for traders to understand the trading hours of the forex market and the brokers they use to ensure that they are trading during the appropriate times.