Forex markets, also known as foreign exchange or currency markets, are open 24 hours a day, five days a week. They operate from Sunday 5 pm EST to Friday 4 pm EST, which means that traders have ample opportunities to trade currencies at any time of the day or night. However, there are specific times during the week when forex markets are closed.
The forex 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 its unique characteristics, and traders can take advantage of market movements during these sessions.
The Sydney session is the first trading session of the week, and it starts on Sunday at 5 pm EST and ends at 2 am EST. This session is relatively quiet, and trading volumes are relatively low compared to the other sessions. The Tokyo session follows the Sydney session and starts at 7 pm EST and ends at 4 am EST. This session is significant for traders who focus on trading the Japanese yen.
The London session is the most significant forex trading session, and it starts at 3 am EST and ends at 12 pm EST. This session is crucial because it overlaps with the Tokyo and New York sessions, making it the most volatile session. The New York session starts at 8 am EST and ends at 5 pm EST. This session is also essential as it overlaps with the London session, which leads to high volatility and liquidity.
Apart from the four major trading sessions, there are specific times during the week when the forex markets are closed. The forex market is closed on weekends, which means that trading activities do not take place on Saturdays and Sundays. However, some brokers provide weekend trading options, which allow traders to trade currencies during the weekend.
Another time when the forex markets are closed is during public holidays. Forex markets are closed on specific public holidays, depending on the country or region. For example, the forex market is closed on Christmas Day, New Year’s Day, and Easter Monday in the United States, United Kingdom, and Europe. During public holidays, trading activities are low, and liquidity is also low.
Apart from public holidays, the forex market may experience closures due to unexpected events such as natural disasters, political events, or technical issues. For example, during the COVID-19 pandemic, some countries closed their borders, which affected trading activities in the forex market. Also, technical issues such as server maintenance may lead to temporary closures of the forex market.
In conclusion, the forex market is open 24 hours a day, five days a week, which provides traders with ample opportunities to trade currencies. However, there are specific times during the week when the forex markets are closed. The forex market is closed on weekends and public holidays, and unexpected events such as natural disasters, political events, or technical issues may lead to temporary closures of the forex market. Traders should be aware of these closures to avoid any inconveniences when trading currencies.
