The foreign exchange market, commonly known as forex, is a decentralized financial market that operates 24 hours a day, five days a week. This market is open from Sunday night through Friday evening, which means that traders and investors have ample opportunities to buy and sell currencies. However, many traders often wonder what time does forex close 6? In this article, we will delve deeper into the forex market’s closing times and the factors that influence them.
Forex Market Trading Sessions
The forex market trading sessions are divided into four main regions: the Asia-Pacific region, the European region, the North American region, and the South American region. Each region has its own opening and closing times, which are influenced by various factors such as daylight savings, public holidays, and other geopolitical events.
The Asia-Pacific Region
The Asia-Pacific region is the first region to open on Sunday night and the last to close on Friday evening. This region includes countries such as Australia, New Zealand, Japan, Singapore, and China. The forex market in this region opens at 6:00 PM EST on Sunday and closes at 4:00 AM EST on Friday.
The European Region
The European region includes countries such as the United Kingdom, Germany, France, and Switzerland. This region’s forex market opens at 2:00 AM EST and closes at 12:00 PM EST on Friday. However, trading activity in this region is most active during the London session, which runs from 3:00 AM EST to 11:00 AM EST.
The North American Region
The North American region includes countries such as the United States, Canada, and Mexico. The forex market in this region opens at 8:00 AM EST and closes at 5:00 PM EST on Friday. The New York session, which is the most active trading session in this region, runs from 8:00 AM EST to 5:00 PM EST.
The South American Region
The South American region includes countries such as Brazil, Argentina, and Chile. The forex market in this region opens at 9:00 AM EST and closes at 5:00 PM EST on Friday. However, trading activity in this region is relatively low compared to other regions.
Factors That Influence Forex Market Closing Times
There are several factors that influence the forex market’s closing times. These factors include:
Daylight savings is a practice where clocks are adjusted forward or back by one hour to maximize daylight hours during the summer months. This practice affects the forex market’s opening and closing times in different regions.
Public holidays in different countries affect the forex market’s opening and closing times. For instance, the forex market in the United States is closed on public holidays such as Christmas Day, New Year’s Day, and Thanksgiving Day.
Geopolitical events such as elections, wars, and natural disasters affect the forex market’s opening and closing times. These events can cause volatility in the market, resulting in fluctuating exchange rates.
In conclusion, the forex market is a 24-hour market that operates from Sunday night to Friday evening. The market’s closing times are influenced by various factors such as daylight savings, public holidays, and geopolitical events. Traders and investors should be aware of these factors to make informed decisions when trading currencies. It is also important to note that different trading sessions have varying levels of activity, and traders should take advantage of the most active sessions to maximize their profits.