Forex, or foreign exchange, is a decentralized and global market for trading currencies. It is open 24/7, except for weekends. However, there are certain trading hours during which the market is more active and volatile due to the overlapping of different sessions. Knowing the trading hours is important for traders as it helps them to plan their trades and avoid unexpected price movements.
In general, the forex market starts on Sunday at 5 pm EST (Eastern Standard Time) and closes on Friday at 5 pm EST. This means that the market is open for 24 hours a day and five days a week. However, the trading hours vary depending on the region and the specific financial instrument being traded.
When it comes to the forex market, there are four main trading sessions – the Asian, European, North American, and Pacific sessions. These sessions overlap at certain times, creating the most active and volatile trading hours. For example, the European and North American sessions overlap from 8 am to 12 pm EST, which is considered the most active trading period.
On Fridays, the forex market closes at 5 pm EST, which is the end of the North American session. After that, the market remains closed during the weekend until it reopens on Sunday at 5 pm EST. However, it is important to note that some brokers may have different trading hours depending on their location and the financial instruments they offer.
For instance, some brokers may close their trading platforms earlier on Fridays, such as at 4 pm EST, to avoid any weekend risk. This means that traders need to check their broker’s trading hours to ensure they do not miss out on any trading opportunities or have any open positions that could be affected by the weekend gap.
The weekend gap refers to the difference in price between the closing price on Friday and the opening price on Monday. This can happen due to various economic or political events that occur during the weekend, such as major news announcements or geopolitical tensions. Traders need to be aware of this risk and consider it when planning their trades.
Moreover, traders need to keep in mind that not all financial instruments have the same trading hours. For example, the forex market is open 24/7, but other markets, such as the stock market, have specific trading hours. Therefore, traders need to be aware of the hours of the financial instruments they are trading and adjust their trading strategies accordingly.
In conclusion, the forex market is open 24/7, except for weekends. On Fridays, the market closes at 5 pm EST, which is the end of the North American session. However, traders need to be aware of their broker’s trading hours and the hours of the financial instruments they are trading. By doing so, they can plan their trades and avoid any unexpected price movements due to the weekend gap.
