The forex market is the largest and most liquid financial market in the world, with a daily turnover of over $6 trillion. It operates 24 hours a day, five days a week, and is open from Sunday evening until Friday afternoon. However, the question that many traders ask is, what time does the forex market close on Friday?
The answer to this question depends on the time zone you are in. The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its unique opening and closing times, which are determined by the local time zone.
In general, the forex market closes at 5:00 PM EST on Friday and reopens at 5:00 PM EST on Sunday. This means that the market is closed for trading during the weekend. However, there are some exceptions to this rule.
For example, the Sydney session and the Tokyo session overlap on Friday night/Saturday morning, which means that the forex market remains open during this time. Traders who want to take advantage of this overlap can trade currency pairs that involve the Australian dollar, the Japanese yen, or both.
Similarly, the London session and the New York session overlap on Friday afternoon, which means that the forex market remains open during this time as well. Traders who want to take advantage of this overlap can trade currency pairs that involve the British pound, the euro, or the US dollar.
It is important to note that although the forex market is open 24 hours a day, not all currency pairs are available for trading at all times. Each currency pair has its unique trading hours, which are determined by the trading sessions that the currencies belong to.
For example, the EUR/USD currency pair is available for trading 24 hours a day, five days a week, but its trading volume is highest during the London and New York sessions. On the other hand, the AUD/USD currency pair is available for trading 24 hours a day, but its trading volume is highest during the Sydney and Tokyo sessions.
In conclusion, the forex market closes at 5:00 PM EST on Friday and reopens at 5:00 PM EST on Sunday. However, there are some exceptions to this rule, and traders can take advantage of overlaps between trading sessions to trade currency pairs that involve specific currencies. It is important to be aware of the trading hours for each currency pair and to plan your trading accordingly.
