Forex, or the foreign exchange market, is a global decentralized market for the trading of currencies. It is open 24 hours a day, five days a week, from Monday to Friday. However, there are times when forex is closed, and traders cannot execute any trades. In this article, we will explore the different times when forex is closed and why.
Trading Hours
Forex is open 24 hours a day, five days a week, from Monday to Friday. The trading day starts in Sydney, Australia, and moves around the world as the day progresses. The market opens on Monday at 5 pm EST (10 pm GMT) and closes on Friday at 5 pm EST (10 pm GMT). This means that there are four trading sessions in a day, each with its unique trading hours.
The four trading sessions are:
1. Sydney session – 5 pm to 2 am EST (10 pm to 7 am GMT)
2. Tokyo session – 7 pm to 4 am EST (12 am to 9 am GMT)
3. London session – 3 am to 12 pm EST (8 am to 5 pm GMT)
4. New York session – 8 am to 5 pm EST (1 pm to 10 pm GMT)
During these trading hours, traders can execute trades and take advantage of the market’s volatility. However, there are times when forex is closed, and traders cannot execute any trades.
Weekends
Forex is closed on weekends, which means that traders cannot execute any trades on Saturday and Sunday. This is because the forex market is decentralized and operates through a network of banks, financial institutions, and brokers. These institutions do not operate on weekends, and therefore forex is closed.
Public Holidays
Forex is also closed on public holidays, which vary from country to country. Each country has its list of public holidays, and forex is closed on these days. During public holidays, there is no trading activity in the forex market, and traders cannot execute any trades.
For instance, in the United States, forex is closed on the following public holidays:
1. New Year’s Day
2. Martin Luther King Jr. Day
3. President’s Day
4. Memorial Day
5. Independence Day
6. Labor Day
7. Columbus Day
8. Veterans Day
9. Thanksgiving Day
10. Christmas Day
During these days, traders cannot execute any trades, and the market remains closed.
Non-Trading Days
There are also non-trading days when forex is closed, and traders cannot execute any trades. These days are rare, and they occur when there is a significant event or a technical issue that affects the market’s operation.
For example, in 2012, the forex market was closed for two days due to Hurricane Sandy, which hit the East Coast of the United States. The market was closed to ensure the safety of traders and to allow them to prepare for the hurricane.
Another example is when the Swiss National Bank (SNB) removed its currency peg to the Euro in 2015. This event caused a significant disruption in the forex market, and many brokers were unable to execute trades, leading to a temporary closure of the market.
Conclusion
Forex is open 24 hours a day, five days a week, from Monday to Friday. However, there are times when forex is closed, and traders cannot execute any trades. Forex is closed on weekends, public holidays, and non-trading days due to significant events or technical issues. Traders must be aware of these times and adjust their trading strategies accordingly to avoid any losses. Overall, forex is an exciting and dynamic market that offers traders endless opportunities, but it is crucial to understand its operating hours and when it is closed to make informed trading decisions.
