Forex or foreign exchange market is the largest financial market in the world with over $5 trillion traded every day. This market is open 24 hours a day, five days a week, from Monday to Friday. However, the market does have specific trading hours that vary depending on the time zone. As such, many traders often wonder what time does forex close on Friday.
Forex trading hours are divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each of these sessions has its opening and closing times based on the local time zone. Forex trading begins on Sunday at 5 pm EST when the Sydney session opens, and it closes on Friday at 5 pm EST when the New York session closes.
The Sydney session is the first to open and is followed by the Tokyo session, then the London session, and finally, the New York session. These sessions overlap, providing traders with the opportunity to trade continuously throughout the day. The most active trading hours are during the London and New York sessions, as these sessions overlap for several hours, providing traders with the most significant liquidity and volatility.
For traders in the United States, the forex market opens at 5 pm EST on Sunday and closes at 5 pm EST on Friday. However, this does not mean that all forex trading activity stops at 5 pm on Friday. Instead, it means that the New York session, which is the last session of the day, closes at 5 pm EST. After the New York session closes, the market remains open for trading in other parts of the world.
It is essential to note that some forex brokers may have different trading hours, depending on where they are located. For instance, a broker located in Europe may have different trading hours from a broker in the United States. As such, it is crucial to check with your broker to determine their trading hours.
Another thing to consider is that forex trading is not available on all holidays. The market is closed on weekends and major holidays, such as Christmas, New Year’s Day, Easter, and Thanksgiving. As such, traders need to be aware of these holidays and adjust their trading strategies accordingly.
In conclusion, the forex market closes on Friday at 5 pm EST, which marks the end of the New York trading session. However, traders can still trade in other parts of the world after the New York session closes. Forex trading hours vary depending on the local time zone, and it is crucial to check with your broker to determine their trading hours. Additionally, traders need to be aware of holidays when the market is closed and adjust their trading strategies accordingly.
