The forex market, also known as the foreign exchange market, is the largest financial market in the world. It operates 24 hours a day, five days a week, from Monday to Friday. However, the forex market does not operate continuously throughout the week. It has specific opening and closing times, depending on the time zone.
Many traders and investors often ask the question, “What time does the forex market close on Friday?” The answer to this question is not straightforward because it depends on several factors. In this article, we will look at the closing times of the forex market on Friday and the factors that influence these times.
Forex Trading Sessions
The forex market is divided into four trading sessions, each with its unique opening and closing times. These sessions are the Sydney session, the Tokyo session, the London session, and the New York session. The timings of these sessions are based on the local time zones of the respective cities.
The Sydney session opens at 10 pm GMT on Sunday and closes at 7 am GMT on Monday. The Tokyo session opens at midnight GMT and closes at 9 am GMT. The London session opens at 8 am GMT and closes at 5 pm GMT. The New York session opens at 1 pm GMT and closes at 10 pm GMT.
Since the forex market operates 24 hours a day, five days a week, the sessions overlap with each other. The London session overlaps with the Tokyo session, while the New York session overlaps with the London session. These overlaps create the most active trading periods during the day.
Forex Market Closing Times on Friday
The forex market closes at 5 pm GMT on Friday, which is the end of the New York session. However, this closing time is not set in stone, and it can vary depending on several factors such as holidays, liquidity, and economic events.
Holidays
The forex market follows the same holiday calendar as the major financial markets around the world. During holidays, the forex market may close earlier than usual or remain closed for the entire day. The holiday calendar varies from country to country, and traders should be aware of the trading hours during these periods.
Liquidity
Liquidity refers to the level of trading activity in the market. The forex market is the most liquid financial market in the world, with trillions of dollars traded every day. However, liquidity can vary depending on the time of day, day of the week, and economic events.
On Fridays, the forex market can experience lower liquidity levels, especially during the New York session. Traders may close their positions before the weekend, resulting in reduced trading activity. As a result, the forex market may close earlier than usual.
Economic Events
Economic events such as central bank announcements, economic data releases, and geopolitical events can affect the forex market’s closing times. These events can cause increased volatility and trading activity, leading to the forex market closing later than usual.
For example, if the Federal Reserve announces a significant policy decision on a Friday, the forex market may remain open beyond the usual closing time to accommodate increased trading activity.
Conclusion
In conclusion, the forex market closes at 5 pm GMT on Friday, marking the end of the New York session. However, the closing time is subject to change depending on holidays, liquidity levels, and economic events. Traders should be aware of these factors and adjust their trading strategies accordingly. It is also essential to note that the forex market operates 24 hours a day, five days a week, and traders can trade during any of the four trading sessions.
