The forex market, also known as the foreign exchange market, is a decentralized market where currencies are traded globally. It is the largest financial market in the world, with a daily turnover of over $5 trillion. The forex market operates 24 hours a day, five days a week, from Monday to Friday. However, the market does not remain open all the time. So, what time does the forex market close? Let’s find out.
Forex Market Hours
The forex market operates across different time zones, and its opening and closing times vary depending on the region. The market opens on Sunday at 5 pm EST (Eastern Standard Time) and closes on Friday at 5 pm EST. However, the market does not close for the weekend entirely. It remains open for trading in some regions, such as Asia and Australia.
Forex Market Sessions
The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. These sessions overlap at different times, creating high liquidity and volatility in the market. The following are the opening and closing times for each session:
Sydney Session: The Sydney session opens at 5 pm EST and closes at 2 am EST.
Tokyo Session: The Tokyo session opens at 7 pm EST and closes at 4 am EST.
London Session: The London session opens at 3 am EST and closes at 12 pm EST.
New York Session: The New York session opens at 8 am EST and closes at 5 pm EST.
When the sessions overlap, it creates a high trading volume, which leads to higher volatility in the market. The most active trading hours are during the London and New York sessions, which overlap for four hours between 8 am EST and 12 pm EST.
Factors That Affect Forex Market Hours
The forex market operates 24 hours a day, five days a week, except for weekends. However, there are some factors that can affect the forex market hours, such as:
Holidays: The forex market does not operate during some holidays, such as Christmas and New Year’s Day. During these periods, the market may close early or remain closed for the day.
Economic data releases: Economic data releases, such as GDP, inflation, and employment reports, can affect the forex market’s opening and closing times. These reports are usually released during the trading sessions, leading to high volatility in the market.
News events: Major news events, such as political upheavals, natural disasters, and geopolitical tensions, can affect the forex market’s operating hours. These events can cause the market to close early or remain closed for the day.
Weekend trading: Some forex brokers offer weekend trading, allowing traders to trade during the weekends. However, weekend trading is not available for all currency pairs and is usually limited to high volatility pairs.
Conclusion
In conclusion, the forex market operates 24 hours a day, five days a week, from Monday to Friday. The market opens on Sunday at 5 pm EST and closes on Friday at 5 pm EST. However, the market does not remain open all the time, and its operating hours vary depending on the region. The market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. These sessions overlap at different times, creating high liquidity and volatility in the market. Factors such as holidays, economic data releases, news events, and weekend trading can affect the forex market’s opening and closing times. As a trader, it is essential to understand the forex market’s operating hours and the factors that can affect them to make informed trading decisions.
