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When do the forex markets close?

The forex market, also known as the foreign exchange market, is a decentralized global market where currencies are traded 24 hours a day, five days a week. The forex market is the largest financial market in the world, with an average daily trading volume of around $6.6 trillion. The forex market is active all day and night, except for weekends when the market is closed. In this article, we’ll explore the forex market’s opening and closing times and their significance.

Forex Market Opening and Closing Times

The forex market is open 24 hours a day, five days a week, from Monday to Friday. However, the market isn’t open 24/7, as there are specific trading hours that traders need to be aware of. These hours are based on the time zone of the country where the forex market is located, and they vary depending on the time zone. The forex market is divided into four major trading sessions, which are the Tokyo, London, New York, and Sydney sessions.

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The Tokyo Session

The Tokyo session is the first trading session of the day and opens at 12:00 AM GMT (Greenwich Mean Time). The Tokyo session is also known as the Asian session and is the least volatile of all the sessions. The Tokyo session accounts for around 20% of the total forex trading volume.

The London Session

The London session opens at 8:00 AM GMT and is the most active trading session of the day. The London session accounts for around 36% of the total forex trading volume. The London session is also known as the European session, and it overlaps with the Tokyo session for a few hours, which makes it the most volatile session of the day.

The New York Session

The New York session opens at 1:00 PM GMT and is the most important trading session of the day. The New York session accounts for around 20% of the total forex trading volume. The New York session overlaps with the London session for a few hours, which makes it the second most volatile session of the day.

The Sydney Session

The Sydney session is the last trading session of the day and opens at 10:00 PM GMT. The Sydney session accounts for around 4% of the total forex trading volume. The Sydney session is also known as the Pacific session and is the least active trading session of the day.

Forex Market Holidays

The forex market is closed on weekends, which means that traders cannot trade on Saturdays and Sundays. The forex market is also closed on public holidays, such as Christmas Day, New Year’s Day, and Easter. Forex traders need to be aware of these holidays and their impact on the forex market. During public holidays, the forex market may experience lower trading volumes, which can lead to increased volatility and wider spreads.

Conclusion

In conclusion, the forex market is open 24 hours a day, five days a week, from Monday to Friday. The forex market is divided into four major trading sessions, which are the Tokyo, London, New York, and Sydney sessions. The forex market is closed on weekends and public holidays, which means that traders need to be aware of these holidays and their impact on the forex market. Understanding the opening and closing times of the forex market is essential for traders to make informed trading decisions and manage their positions effectively.

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