The foreign exchange market, also known as forex or FX, is the largest financial market in the world. It operates 24 hours a day, five days a week, except for weekends and holidays. As a global market, forex trading is conducted across different time zones, making it crucial to know when the market opens and closes in your specific location.
For traders in California, the forex market closes at 1 pm Pacific Standard Time (PST) on Friday and reopens at 2 pm PST on Sunday. This is because the forex market follows the sun, meaning that as the day ends in one part of the world, it begins in another.
The forex market operates in four major trading sessions: the Asian session, European session, North American session, and Pacific session. The Pacific session, which includes markets in Australia, New Zealand, and Japan, is the first to open on Sunday evening, followed by the Asian session, European session, and finally, the North American session.
California falls under the Pacific time zone, which means that forex trading hours in California align with the Pacific session’s open and close times. The Pacific session typically opens at 2 pm PST on Sundays and closes at 11 pm PST on Thursdays. However, during daylight saving time, which occurs between March and November, the forex market opens an hour earlier at 1 pm PST and closes at 10 pm PST.
It is worth noting that while the forex market closes on Fridays at 1 pm PST, some brokers may continue to offer trading services until 5 pm PST. These extended hours are known as the after-hours market or the weekend market. However, it is essential to check with your broker to confirm their operating hours during these periods.
Moreover, it is crucial to keep in mind that the forex market’s closing time in California may vary depending on global events, news releases, and market volatility. For instance, if there is a significant economic announcement or geopolitical event, the forex market may experience increased volatility, leading to extended trading hours.
In conclusion, the forex market operates 24 hours a day, five days a week, except on weekends and holidays. In California, the forex market closes at 1 pm PST on Fridays and reopens at 2 pm PST on Sundays, aligning with the Pacific session’s open and close times. However, it is vital to keep track of any changes in the forex market’s closing time due to global events and market volatility.
