The foreign exchange market, commonly known as the forex market, is the largest financial market in the world. It is open 24 hours a day, five days a week, and trades around $5 trillion a day. Understanding the forex market hours is essential for traders looking to enter the market or to plan their trading strategy. In this article, we will explain what time the forex market opens and closes.
Forex market hours
The forex market is open 24 hours a day, five days a week, from Sunday at 5 pm EST to Friday at 5 pm EST. However, not all trading hours are created equal, and there are specific trading sessions that are more active and volatile than others.
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 certain times, creating increased trading activity and volatility.
Sydney session
The Sydney session is the first session of the forex market week, and it opens at 5 pm EST on Sunday. It is also the least active session, with the lowest trading volume compared to the other sessions. The Sydney session is mainly focused on the Australian and New Zealand markets.
Tokyo session
The Tokyo session starts at 7 pm EST and overlaps with the Sydney session for two hours. It is the second least active trading session, but it is the most active session in the Asian markets. The Tokyo session is also known as the Asian session and is focused on the Japanese market.
London session
The London session is the most active trading session, and it starts at 3 am EST. It overlaps with the Tokyo session for two hours and with the New York session for four hours. The London session is focused on the European markets and is characterized by high liquidity and volatility.
New York session
The New York session starts at 8 am EST and overlaps with the London session for four hours. It is the second most active session, and it is focused on the American markets. The New York session is characterized by high liquidity and volatility, especially during the first hour of trading.
Trading hours during holidays
The forex market is open 24 hours a day, but it is closed on weekends and during certain holidays. It is important to keep track of the holiday schedule to avoid trading during periods of low liquidity, as this can increase the risk of slippage and widen spreads.
Some of the major holidays that affect the forex market include Christmas, New Year’s Day, Easter, and Thanksgiving. During these holidays, the forex market may be closed or have reduced trading hours.
Conclusion
Understanding the forex market hours is crucial for traders looking to enter or plan their trading strategy. The forex market is open 24 hours a day, five days a week, from Sunday at 5 pm EST to Friday at 5 pm EST. The market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has different levels of liquidity and volatility, with the London session being the most active and volatile. It is also important to keep track of the holiday schedule to avoid trading during periods of low liquidity.
