The foreign exchange market, or forex market, is open 24 hours a day, five days a week. It is the largest financial market in the world with an average daily trading volume of $6.6 trillion. However, even though it is open around the clock, there are specific times when the forex market closes.
The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session is open for a specific period of time, and they overlap with each other, creating a continuous 24-hour trading cycle.
The Sydney session starts at 10 pm GMT on Sunday and ends at 7 am GMT on Monday. This session is relatively quiet, with low trading volume and volatility, as it overlaps with the end of the weekend in Europe and the United States.
The Tokyo session starts at midnight GMT and ends at 9 am GMT. This session is also known as the Asian session and is the busiest time of the day for traders in the Asia-Pacific region. The Japanese yen is the most traded currency during this session.
The London session starts at 8 am GMT and ends at 5 pm GMT. This session is the most active session of the day, as it overlaps with the Tokyo and New York sessions. London is considered the forex capital of the world, and the British pound is the most traded currency during this session.
The New York session starts at 1 pm GMT and ends at 10 pm GMT. This session overlaps with the London session, creating a period of high trading volume and volatility. The US dollar is the most traded currency during this session.
Even though the forex market is open 24 hours a day, it does close on weekends. The market closes at 10 pm GMT on Friday and reopens at 10 pm GMT on Sunday. During the weekend, there is no trading activity in the forex market, and traders use this time to analyze the market and prepare for the upcoming trading week.
In addition to weekends, the forex market also closes on certain holidays. These holidays vary from country to country and can impact trading activity in the forex market. Some of the major holidays that affect the forex market include Christmas, New Year’s Day, Easter, and Thanksgiving.
It is important for traders to be aware of the different trading sessions and market closures to make informed trading decisions. For example, traders may want to avoid trading during the Sydney session due to low trading volume and volatility. On the other hand, the London and New York sessions offer high trading volume and volatility, providing more opportunities for profit.
In conclusion, the forex market is open 24 hours a day, five days a week. It is divided into four major trading sessions, each with its own characteristics and trading volume. The market closes on weekends and certain holidays, which can impact trading activity. Traders need to be aware of these closures and session times to make informed trading decisions.
