Forex markets, also known as foreign exchange markets, are global markets where currencies of various countries are traded. These markets operate 24 hours a day, five days a week, allowing traders to buy and sell currencies at any time of the day or night. However, forex markets do close on weekends. In this article, we will discuss when forex markets close on Friday.
Forex Markets Trading Hours
Forex markets operate from Sunday evening to Friday evening, with the exception of weekends. The trading week starts on Sunday at 10 pm GMT and ends on Friday at 10 pm GMT. However, forex trading hours vary depending on the location and time zone of the trader.
For instance, the forex market opens at 5 pm EST on Sunday and closes at 5 pm EST on Friday in New York, while in London, the forex market opens at 10 pm GMT on Sunday and closes at 10 pm GMT on Friday. The forex market operates in different time zones, making it possible for traders from all over the world to participate in the market.
When Do Forex Markets Close on Friday?
Forex markets close on Friday at 10 pm GMT in London, which is 5 pm EST in New York. This means that traders in London can trade until 10 pm GMT, while traders in New York can trade until 5 pm EST. After this time, forex markets are closed for the weekend, and traders cannot buy or sell currencies until the market reopens on Sunday at 10 pm GMT.
It is important to note that some forex brokers may close their trading desks earlier than the official market close time. This is because forex brokers may have different trading hours from the actual market hours. Traders should check with their brokers to confirm their trading hours and ensure they do not miss any trading opportunities.
Why Do Forex Markets Close on Weekends?
Forex markets close on weekends to allow traders and investors to take a break from trading and to give financial institutions time to reconcile their accounts. The forex market is a decentralized market, meaning that there is no central exchange where all trades are conducted. Instead, trades are conducted electronically through a network of banks, financial institutions, and individual traders.
During the weekend, banks and financial institutions are closed, and there are no new economic reports or news events to affect the currency markets. This makes the forex market less volatile, and traders can use the time to analyze the market and develop trading strategies for the upcoming week.
Forex markets operate 24 hours a day, five days a week, allowing traders to buy and sell currencies at any time of the day or night. However, forex markets close on weekends to allow traders and financial institutions time to rest and reconcile their accounts. Forex markets close on Friday at 10 pm GMT in London, which is 5 pm EST in New York. Traders should check with their brokers to confirm their trading hours and ensure they do not miss any trading opportunities.