The forex market is the largest and most liquid financial market in the world, with an average daily turnover of over $5 trillion. It operates 24 hours a day, five days a week, allowing traders to buy and sell currencies at any time. However, there are specific times when the forex market opens and closes, and it is essential for traders to understand these hours to take advantage of the market’s opportunities.
Forex Market Hours
The forex market opens on Sunday at 5:00 pm EST (10:00 pm GMT) and closes on Friday at 5:00 pm EST (10:00 pm GMT). It operates 24 hours a day, five days a week, with trading sessions in different time zones. The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session.
The Sydney session starts at 5:00 pm EST (10:00 pm GMT) on Sunday and closes at 2:00 am EST (7:00 am GMT) on Monday. It is the least liquid session, with low volatility and limited trading opportunities. The Tokyo session starts at 7:00 pm EST (12:00 am GMT) and closes at 4:00 am EST (9:00 am GMT). It is characterized by high volatility, with the Japanese yen being the most traded currency.
The London session starts at 3:00 am EST (8:00 am GMT) and closes at 12:00 pm EST (5:00 pm GMT). It is the most liquid session, with high volatility and a significant number of trading opportunities. The New York session starts at 8:00 am EST (1:00 pm GMT) and closes at 5:00 pm EST (10:00 pm GMT). It is also a highly liquid session, with high volatility and trading opportunities.
The forex market is open 24 hours a day, allowing traders to buy and sell currencies at any time. However, it is essential to note that not all currency pairs are active during all trading sessions. For instance, the AUD/USD pair is most active during the Sydney and Tokyo sessions, while the EUR/USD pair is most active during the London and New York sessions.
Friday Trading Hours
The forex market closes on Friday at 5:00 pm EST (10:00 pm GMT) and reopens on Sunday at 5:00 pm EST (10:00 pm GMT). However, the trading hours on Friday may vary depending on the currency pair and the broker. Some brokers may close their trading platforms earlier on Friday, especially during holidays or low liquidity periods.
Traders should also be aware of the rollover period, which occurs at 5:00 pm EST (10:00 pm GMT) on Wednesday. During this time, all open positions are rolled over to the next trading day, and traders may incur or receive swap charges, depending on the interest rates of the currencies involved.
Friday is considered a volatile day in the forex market, with high volatility and significant price movements. This is because traders are closing their positions before the weekend, and there may be news releases or events that affect the market sentiment. Traders should be cautious when trading on Friday and avoid opening new positions close to the market close.
Conclusion
The forex market is a 24-hour market that operates five days a week, with trading sessions in different time zones. It opens on Sunday at 5:00 pm EST (10:00 pm GMT) and closes on Friday at 5:00 pm EST (10:00 pm GMT). Traders should be aware of the different trading sessions and the most active currency pairs during each session.
Friday is considered a volatile day in the forex market, with high volatility and significant price movements. Traders should be cautious when trading on Friday and avoid opening new positions close to the market close. It is essential to research and understand the market’s hours and trading sessions to take advantage of the market’s opportunities and manage risk effectively.
