The foreign exchange market, also known as the forex market, is a decentralized marketplace where currencies are traded. It is the largest financial market in the world with an average daily trading volume of over $5 trillion. The forex market operates 24 hours a day, 5 days a week, opening on Monday morning in the Asia-Pacific region and closing on Friday evening in New York.
The forex market is open 24 hours a day, 5 days a week, due to its global nature. The market operates in different time zones, and as one market closes, another one opens. The forex market is divided into four major trading sessions, which are the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its own unique characteristics and trading hours.
The Sydney session is the first to open, starting at 10 pm GMT on Sunday and closing at 7 am GMT on Monday. The Tokyo session follows, opening at 12 am GMT and closing at 9 am GMT. The London session is the most active session, opening at 8 am GMT and closing at 5 pm GMT. Finally, the New York session opens at 1 pm GMT and closes at 10 pm GMT.
On Fridays, the forex market operates as usual until the New York session ends at 10 pm GMT. However, traders should note that liquidity decreases as the weekend approaches, and as a result, volatility may increase. This is because traders tend to close out their positions before the weekend to avoid any unexpected events that could occur over the weekend.
The forex market closes on Fridays at 10 pm GMT, which is the end of the New York session. After that, the market is closed for the weekend until the Sydney session opens on Sunday night. During this time, traders cannot open or close any positions as the market is closed. However, traders can still monitor their positions and make any necessary adjustments before the market reopens.
It is essential to note that some brokers may have different trading hours due to their location or the instruments they offer. For instance, brokers based in Australia may have different trading hours compared to brokers based in the United States. Therefore, traders should always check with their broker to confirm their trading hours.
In conclusion, the forex market is open 24 hours a day, 5 days a week, with the market opening on Monday morning in the Asia-Pacific region and closing on Friday evening in New York. The market closes on Fridays at 10 pm GMT, after which it is closed for the weekend until the Sydney session opens on Sunday night. Traders should always check with their broker to confirm their trading hours, as some brokers may have different trading hours due to their location or the instruments they offer.
