What Time Does Forex Market Close
Introduction
The forex market also known as the foreign exchange market operates 24 hours a day five days a week. It is the largest financial market in the world where currencies are traded. However there are certain trading sessions during which the forex market is most active it is important for traders to be aware of when the market closes.
Asian Trading Session
The first major forex trading session is the Asian session which begins at 6:00 PM EST ends at 3:00 AM EST. This session is primarily influenced by market activities in Japan Australia New Zealand other Asian countries. The forex market closes for the day at the end of this session but it reopens again in a few hours to start the European session.
European Trading Session
The European session starts at 3:00 AM EST ends at 12:00 PM EST. It is the most active volatile trading session as major financial centers such as London Frankfurt Paris are open for business during this time. Traders focusing on major currency pairs often prefer trading in this session due to the high liquidity price movements.
American Trading Session
The final major trading session is the American session which commences at 8:00 AM EST ends at 5:00 PM EST. This session overlaps with the European session for a few hours resulting in increased trading activity. The American session includes market activities in New York Chicago other major American cities it is known for its liquidity volatility.
Weekend Market Close
It is important to note that the forex market closes for the weekend on Friday at 5:00 PM EST. After this there is no trading activity until the market reopens on Sunday at 5:00 PM EST. During weekends financial institutions governments retail traders take a break from forex trading until the start of the new week.
Conclusion
The forex market operates 24 hours a day five days a week but certain trading sessions have higher activity volatility than others. The Asian European American trading sessions offer different opportunities for traders it is crucial to be aware of the market closing times. By understanding these timings traders can plan their trading strategies accordingly maximize their chances of success in the forex market.
