The forex market is the largest financial market in the world with a daily trading volume of over $5 trillion. It is open 24 hours a day, five days a week, allowing traders to trade currencies around the clock. However, the market does have certain trading hours, and it is important to know when the forex market closes on Fridays.
The forex market operates in different time zones, with the main trading centers located in London, New York, and Tokyo. The market opens on Sunday evening at 5:00 pm EST (10:00 pm GMT) with the opening of the Australian session, and it closes on Friday evening at 5:00 pm EST (10:00 pm GMT) with the closing of the New York session.
The forex market closes on Friday at 5:00 pm EST because that is the end of the business week in the United States, which is the largest economy in the world. The forex market follows the business hours of the major financial centers, and as the New York session comes to a close, the market becomes less liquid, and volatility decreases.
It is important to note that the forex market is not closed for the entire weekend. While the major financial centers are closed, trading continues in other parts of the world, such as Australia and Asia. However, trading during this time is typically thin, and the market is less liquid, which can lead to wider spreads and increased volatility.
Traders who want to take advantage of the weekend trading hours can trade in the Asian session, which starts on Sunday evening at 5:00 pm EST (10:00 pm GMT) and ends on Friday evening at 5:00 pm EST (10:00 pm GMT). The Asian session is known for its low volatility, which can make it an ideal time for traders who prefer to trade in a less hectic environment.
In addition to the regular trading hours, the forex market also has extended trading hours during certain periods of the year. For example, during the Christmas and New Year holidays, trading can continue around the clock, with the exception of a few hours on Christmas Day and New Year’s Day when the market is closed.
It is important for traders to be aware of the forex market closing times, as this can have a significant impact on their trading strategies. For example, traders who prefer to trade during high volatility periods may want to focus on the London and New York sessions, which overlap for several hours during the day and can provide increased trading opportunities.
In conclusion, the forex market closes on Friday at 5:00 pm EST (10:00 pm GMT) with the closing of the New York session. Traders who want to take advantage of the weekend trading hours can trade in the Asian session, which starts on Sunday evening at 5:00 pm EST (10:00 pm GMT). It is important for traders to be aware of the forex market closing times, as this can have a significant impact on their trading strategies.
