The foreign exchange market, also known as forex, is the largest and most liquid financial market in the world. It operates 24 hours a day, five days a week, which makes it possible for traders to buy and sell currencies at any time of day or night. However, there are certain times when forex closes, and it’s important for traders to understand these hours to avoid any unexpected market moves.
Forex Market Hours
The forex market is open 24 hours a day, five days a week, from Sunday at 5 pm Eastern Time (ET) to Friday at 5 pm ET. This means that traders have access to the market whenever they want, regardless of where they are in the world. The market is open for trading in all major financial centers, including London, New York, Tokyo, Hong Kong, Sydney, and Singapore.
The forex market is divided into three major trading sessions: the Asian session, the European session, and the US session. Each session has its own unique characteristics, and the trading volume and volatility of the market vary during each session. The table below shows the opening and closing times of each session in Eastern Time (ET).
Session | Open | Close
— | — | —
Asian | Sunday at 5 pm ET | Friday at 4 pm ET
European | Sunday at 10 pm ET | Friday at 11 am ET
US | Monday at 8 am ET | Friday at 5 pm ET
When Does Forex Close for the Weekend?
The forex market is closed on weekends, which means that trading does not take place on Saturdays and Sundays. The market closes on Friday at 5 pm ET and reopens on Sunday at 5 pm ET. This break in trading allows traders to take a break from the market and prepare for the upcoming week.
However, it’s important to note that some brokers may offer trading on the weekends through their trading platforms. This is known as weekend trading or after-hours trading, and it allows traders to buy and sell currencies during the weekend when the market is closed. Weekend trading is typically limited to certain currency pairs and has higher spreads and lower liquidity compared to regular trading hours.
When Does Forex Close for Holidays?
The forex market is also closed on certain holidays throughout the year. These holidays include national holidays in different countries, such as Christmas, New Year’s Day, Labor Day, and Independence Day. The exact holidays and closure times vary depending on the country and the exchange.
During holidays, trading volumes and liquidity in the market are typically lower, which can result in increased volatility and wider spreads. Traders should be aware of the holiday schedule and plan their trading accordingly to avoid any unexpected market moves.
Conclusion
The forex market is a 24-hour market, which means that traders have access to the market whenever they want. However, there are certain times when forex closes, such as weekends and holidays. It’s important for traders to understand these hours to avoid any unexpected market moves and plan their trading accordingly. By understanding the trading hours and market sessions, traders can take advantage of the opportunities presented by the forex market and make informed trading decisions.
