The foreign exchange market, commonly known as the forex market, is the most liquid and largest financial market in the world. It operates 24 hours a day, five days a week, providing traders with the opportunity to trade currencies around the clock. However, there are times when the forex market is closed, and traders cannot execute trades. In this article, we will discuss when the forex market opens again after it closes.
The forex market operates on a global scale, and it is divided into four major trading sessions – the Asian session, the European session, the North American session, and the Pacific session. Each session has its unique characteristics, and traders can take advantage of the different market conditions during each session.
The Asian session starts at 6:00 p.m. EST on Sunday and ends at 4:00 a.m. EST on Monday. This session is dominated by the Japanese yen, as Tokyo is the largest financial center in Asia. Traders can expect lower volatility during this session, as most of the major financial centers in Europe and the US are closed.
The European session starts at 2:00 a.m. EST and ends at 12:00 p.m. EST. This session is the most active and volatile session, as it overlaps with both the Asian and North American sessions. The European session is dominated by the euro, with London being the primary financial center in Europe.
The North American session starts at 8:00 a.m. EST and ends at 5:00 p.m. EST. This session is dominated by the US dollar, with New York being the primary financial center in North America. The North American session overlaps with the European session, providing traders with high volatility and liquidity.
The Pacific session starts at 9:00 p.m. EST and ends at 6:00 a.m. EST. This session is dominated by the Australian dollar and the New Zealand dollar, with Sydney being the primary financial center in the Pacific region.
The forex market is closed on weekends, which means that traders cannot execute trades on Saturdays and Sundays. However, there are exceptions to this rule. Some brokers offer weekend trading, which means that traders can execute trades on weekends. However, the liquidity is usually low during weekends, and the spreads are wider, making it less attractive for traders.
The forex market also closes during public holidays in different countries. For example, the forex market is closed in the US on Independence Day (July 4th), Thanksgiving Day (fourth Thursday of November), and Christmas Day (December 25th). Similarly, the forex market is closed in the UK on Christmas Day (December 25th) and Boxing Day (December 26th).
In conclusion, the forex market operates 24 hours a day, five days a week, providing traders with ample opportunities to trade currencies around the clock. However, the market is closed on weekends and during public holidays in different countries. Traders should be aware of the different trading sessions and the market conditions during each session to make informed trading decisions.
