The forex market, also known as the foreign exchange market, is the largest and most liquid financial market in the world. It operates 24 hours a day, five days a week, and is open to traders from all over the world. However, there are certain times when the market opens, closes, and observes holidays. In this article, we will explain the timings and holidays of the forex market.
When Does the Forex Market Open?
The forex market technically never closes, as it operates 24 hours a day, five days a week. However, the market is divided into three major trading sessions: the Asian, European, and American sessions. The Asian session starts on Sunday at 5:00 PM EST and ends on Friday at 4:00 PM EST. During this session, the major trading centers are Tokyo, Sydney, and Singapore.
The European session starts at 2:00 AM EST and ends at 11:00 AM EST. The major trading centers during this session are London, Frankfurt, and Zurich. The American session starts at 8:00 AM EST and ends at 5:00 PM EST. The major trading centers during this session are New York, Chicago, and Toronto.
It is important to note that the timings of the forex market vary according to the time zone you are in. For example, if you are in London, the European session will start at 7:00 AM GMT and end at 4:00 PM GMT. If you are in Sydney, the Asian session will start at 7:00 PM AEST and end at 4:00 AM AEST.
When Does the Forex Market Close?
As mentioned earlier, the forex market technically never closes, as it operates 24 hours a day, five days a week. However, there are certain times when the market is less active and trading volumes are lower. These times are known as the market close.
The market close occurs between the end of the American session and the start of the Asian session. During this time, there is usually a lull in trading activity as traders in the American session wind down and traders in the Asian session start to gear up. The market close starts at 5:00 PM EST on Friday and ends at 5:00 PM EST on Sunday.
It is important to note that the market close may not apply to all currency pairs. Some currency pairs may continue to trade during this time, especially those that involve the Australian, New Zealand, and Japanese currencies.
Forex Market Holidays
The forex market observes several holidays throughout the year, during which trading is either limited or closed altogether. These holidays vary depending on the country and currency involved in the trade. Here are some of the major holidays observed by the forex market:
New Year’s Day: January 1
Martin Luther King, Jr. Day: Third Monday in January
Presidents’ Day: Third Monday in February
Good Friday: Friday before Easter Sunday
Easter Monday: Monday after Easter Sunday
May Day: May 1
Memorial Day: Last Monday in May
Independence Day: July 4
Labor Day: First Monday in September
Thanksgiving Day: Fourth Thursday in November
Christmas Day: December 25
Boxing Day: December 26
It is important to note that the forex market may not observe all of these holidays, especially those that are specific to certain countries. For example, Thanksgiving Day is only observed in the United States, so traders in other countries may continue to trade as usual.
The forex market operates 24 hours a day, five days a week, and is open to traders from all over the world. However, there are certain times when the market is more active and certain times when it is less active. Additionally, the market observes several holidays throughout the year, during which trading is either limited or closed altogether. As a trader, it is important to be aware of these timings and holidays in order to make informed trading decisions.