The forex market, also known as the foreign exchange market, is a global decentralized market where currencies are traded. It is open 24 hours a day, five days a week, making it the largest and most liquid market in the world. However, there are specific times when the forex market closes, and Friday, December 30, 2016, is no exception.
The forex market operates across four major time zones: Sydney, Tokyo, London, and New York. Each of these sessions has its opening and closing times, which overlap with other sessions, creating a continuous trading day. However, the forex market has specific hours of operation, and traders must be aware of these times to plan their trading activities.
The forex market closes on Fridays at 10 pm GMT (5 pm EST) in New York, which is the last trading session of the week. However, the forex market does not close entirely during the weekend, as it reopens on Sunday at 10 pm GMT (5 pm EST) in Sydney. This means that forex traders can still place orders and execute trades over the weekend, albeit with reduced liquidity.
It is worth noting that the forex market closing times on Friday, December 30, 2016, will vary depending on the time zone. For instance, the forex market will close at 5 pm EST in New York, 10 pm GMT in London, and 8 am AEDT (Australian Eastern Daylight Time) in Sydney on Friday, December 30, 2016. This is because the forex market operates across different time zones, and each session has its hours of operation.
The forex market closing times on Friday, December 30, 2016, are essential for traders because they affect the liquidity and volatility of the market. As the forex market approaches its closing time, liquidity tends to decrease, which can lead to wider spreads and slippage. Traders must consider this when placing orders and managing their positions.
Furthermore, the forex market closing times on Friday, December 30, 2016, coincide with the end of the year, which can amplify the effect of low liquidity. Many traders and investors tend to close their positions before the end of the year to avoid carrying them over to the next year. This can lead to increased volatility and erratic price movements, which can catch traders off guard.
In conclusion, the forex market closes on Friday, December 30, 2016, at different times depending on the time zone. Traders must be aware of these times to plan their trading activities and manage their positions effectively. The end of the year can also amplify the effect of low liquidity, so traders must exercise caution and be prepared for unexpected price movements.
