The foreign exchange market, or forex market, is a decentralized global market where currencies are traded 24 hours a day, five days a week. However, despite the 24/5 nature of the forex market, there are certain times when the market is more active and liquid than others.
One of the most common questions asked by traders is, “What time on Friday does the forex market close on the East Coast?” The answer to this question is not as straightforward as one may think, as there are different closing times depending on the location and time zone of the trader.
In general, the forex market closes at 5:00 pm Eastern Standard Time (EST) on Friday and opens again at 5:00 pm EST on Sunday. This means that the forex market is closed for trading during the weekends, allowing traders to take a break from the market and recharge for the upcoming week.
However, it’s important to note that the forex market operates on a rolling 24-hour basis, meaning that as one market closes, another market opens. This creates a continuous trading cycle throughout the week, with different trading sessions overlapping one another.
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 and Tokyo sessions overlap for a few hours, as do the London and New York sessions.
The Sydney session opens at 5:00 pm EST on Sunday and closes at 2:00 am EST on Monday. This is followed by the Tokyo session, which opens at 7:00 pm EST and closes at 4:00 am EST. The London session opens at 3:00 am EST and closes at 12:00 pm EST, while the New York session opens at 8:00 am EST and closes at 5:00 pm EST.
It’s worth noting that the forex market is not closed during national holidays, which can affect trading volumes and liquidity. For example, during the Christmas and New Year holidays, the forex market may experience lower trading volumes due to market closures in major financial centers such as London and New York.
In addition to national holidays, there are other events that can affect the forex market closing times. For example, during daylight savings time, the opening and closing times of the different trading sessions may shift by an hour. This can cause confusion among traders who are not aware of the time changes, leading to potential trading errors and losses.
In conclusion, the forex market closes at 5:00 pm EST on Friday and opens again at 5:00 pm EST on Sunday. However, the market operates on a rolling 24-hour basis, with different trading sessions overlapping one another. It’s important for traders to be aware of the opening and closing times of the different trading sessions, as well as any events that may affect the market’s closing times. By staying informed and aware, traders can make more informed trading decisions and potentially increase their chances of success in the forex market.
