The forex market, also known as the foreign exchange market, is a decentralized market for trading currencies. This market is open 24 hours a day, five days a week, and it is the largest financial market in the world. However, while the market is open continuously, there are specific times when it is more active and volatile than others. In this article, we will explain when forex closes today, and what you need to know about the different trading sessions.
Forex Trading Sessions
The forex market operates around the clock, but it does not mean that all trading sessions are created equal. The 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 own characteristics, and traders need to understand these to make informed trading decisions.
The Sydney Session
The Sydney session is the first session to open in the forex market. It starts at 10 pm GMT on Sunday and closes at 7 am GMT on Monday. This session is relatively quiet, with low volatility and liquidity, as the major financial centers are closed.
The Tokyo Session
The Tokyo session starts at 12 am GMT and closes at 9 am GMT. This session is more active than the Sydney session, and it is characterized by the Japanese yen’s volatility. The yen is one of the world’s most traded currencies, and it is heavily influenced by the Bank of Japan’s monetary policy decisions.
The London Session
The London session is the most active session in the forex market, and it accounts for more than 30% of all forex transactions. It starts at 8 am GMT and closes at 5 pm GMT. This session overlaps with the Tokyo session for a few hours, creating a high level of liquidity and volatility. The London session is known for its major currency pairs, such as EUR/USD, GBP/USD, and USD/CHF.
The New York Session
The New York session is the last session of the day in the forex market. It starts at 1 pm GMT and closes at 10 pm GMT. This session overlaps with the London session for a few hours, creating a high level of liquidity and volatility. The New York session is known for its major currency pairs, such as USD/JPY, USD/CAD, and USD/CHF.
When Does Forex Close Today?
As we mentioned earlier, the forex market is open 24 hours a day, five days a week. However, the market does close on weekends. The market closes at 10 pm GMT on Friday and reopens at 10 pm GMT on Sunday. This means that there is no trading activity during the weekend.
It is worth noting that some forex brokers may have different trading hours, depending on their location and the financial instruments they offer. Therefore, it is important to check with your broker to confirm their trading hours.
Conclusion
In conclusion, the forex market is a 24-hour market, and it 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 own characteristics, and traders need to understand these to make informed trading decisions. The market closes on weekends and reopens at 10 pm GMT on Sunday. However, some forex brokers may have different trading hours, so it is important to check with your broker to confirm their trading hours.
