The forex market is the largest and most liquid financial market in the world, with an average daily trading volume of over $5 trillion. It operates 24 hours a day, five days a week, which means that traders can participate in the market at any time. However, there are specific hours when the market is more active and volatile, which can present both opportunities and risks for traders. In this article, we will explain when the market closes in forex and how it affects traders.
Forex Market Hours
The forex market is open 24 hours a day, from Sunday at 5:00 PM Eastern Time (ET) to Friday at 5:00 PM ET. This means that traders can participate in the market at any time, regardless of their location or time zone. However, the forex market is not equally active throughout the day. There are specific hours when the market is more active and volatile, which can create opportunities for traders.
The forex market is divided into three main trading sessions: the Asian session, the European session, and the North American session. Each session has its unique characteristics, such as the currency pairs that are most actively traded and the economic events that affect the market. The table below shows the opening and closing times of each session in Eastern Time.
Session Open Close
Asian 5:00 PM 2:00 AM
European 2:00 AM 11:00 AM
North American 8:00 AM 5:00 PM
The Asian session begins on Sunday at 5:00 PM ET and ends on Monday at 2:00 AM ET. This session is the least active of the three, as most of the major financial centers in the world are closed during this time. However, there are still opportunities for traders, particularly in the Japanese yen and the Australian dollar, which are most active during this session.
The European session begins at 2:00 AM ET and ends at 11:00 AM ET. This session is the most active of the three, as it overlaps with the Asian and North American sessions. During this time, the major currency pairs, such as the EUR/USD, GBP/USD, and USD/CHF, are most actively traded. Economic news releases from the Eurozone and the United Kingdom can also increase volatility in the market.
The North American session begins at 8:00 AM ET and ends at 5:00 PM ET. This session overlaps with the European session for a few hours, which can create high volatility in the market. The United States dollar is the most actively traded currency during this session, and economic news releases from the United States can have a significant impact on the market.
Market Holidays
Although the forex market is open 24 hours a day, there are specific days when the market is closed or has reduced trading hours. These are known as market holidays and can affect the trading volume and volatility in the market. The table below shows the market holidays for the major financial centers in the world.
Financial Center Holiday Date
United States Martin Luther King Jr. Day January 18
Australia Australia Day January 26
China Lunar New Year February 12-17
Japan National Foundation Day February 11
United States Presidents’ Day February 15
United Kingdom Early May Bank Holiday May 3
United States Memorial Day May 31
United Kingdom Spring Bank Holiday June 7
United States Independence Day July 5
Japan Marine Day July 19
United Kingdom Summer Bank Holiday August 30
United States Labor Day September 6
China Mid-Autumn Festival September 20-21
Japan Sports Day October 11
United States Columbus Day October 11
China National Day October 1-7
United States Veterans Day November 11
United States Thanksgiving Day November 25
United States Christmas Day December 24
Japan Emperor’s Birthday December 23
It is essential for traders to be aware of market holidays, as they can affect the liquidity and volatility in the market. Some brokers may also have reduced trading hours or close their trading platform during market holidays, so traders should check with their broker for any changes in trading hours.
Conclusion
The forex market is open 24 hours a day, five days a week, which means that traders can participate in the market at any time. However, the market is not equally active throughout the day, and there are specific hours when the market is more volatile and presents more opportunities for traders. Traders should also be aware of market holidays, as they can affect the trading volume and volatility in the market. By understanding the market hours and holidays, traders can plan their trading strategies and take advantage of the opportunities presented by the forex market.
