The forex market is open 24 hours a day, five days a week, making it one of the most accessible and liquid financial markets in the world. However, despite the market being open around the clock, there are specific times when trading activity is more active, and other times when it slows down significantly.
Forex trading hours are divided into three main sessions – Asian, European and American – which overlap to some extent. The Asian session starts on Sunday evening, while the European session begins around 8 am GMT, and the American session starts at noon GMT. Friday is generally the busiest day of the trading week as it is the last day of the trading week in most parts of the world. However, the forex market does close on Friday, and knowing when it closes is essential for traders.
The forex market closes at 5 pm EST on Friday, which is 10 pm GMT. This marks the end of the week-long trading activity and the beginning of the weekend. The market will then remain closed for the weekend and reopens on Sunday evening, starting the new trading week. It is worth noting that the forex market may sometimes close earlier on Fridays, especially during holidays or if there are significant global events like major economic announcements or geopolitical events.
Many traders prefer to close their positions before the market closes on Friday to avoid any unwanted surprises over the weekend. It is not uncommon for significant news events to occur over the weekend, which can lead to significant market gaps when the market reopens on Sunday. These gaps can result in unexpected losses for traders who have left their positions open over the weekend. Therefore, it is always advisable to close your positions before the market closes on Friday.
It is also worth noting that the forex market closing time on Friday may vary depending on the broker you are using. Some brokers may close their trading platforms a few minutes before the actual market close to avoid any last-minute trading activity. As a trader, it is crucial to know the exact closing time of your broker and adjust your trading strategy accordingly.
In conclusion, the forex market closes at 5 pm EST on Friday, marking the end of the trading week. However, it is essential to note that the closing time may vary depending on the broker you are using or if there are significant global events. As a trader, it is always advisable to close your positions before the market closes on Friday to avoid any unwanted surprises over the weekend. Understanding the closing time of the forex market is crucial to developing a successful trading strategy and managing your risk effectively.