New forex traders frequently ask, “What time is the forex market open?” as interest in forex trading grows. The next query is, “How is that possible?” when they discover that the forex market is open 24/5.
And the solution is relatively simple: since there is no central exchange for the forex market, trading “follows the sun,” shifting from one nation to the next as the sessions go on, allowing each session to perfectly overlap the others.
Foreign exchange market hours typically run from Monday through Friday during the business day, with a break on Friday when the main banks are closed.
Consequently, the forex market is typically classified into three sessions: Tokyo, London, and New York. Forex traders can be benefited from forex trading at any time because these sessions span numerous time zones.
There will still be an open and ready market for trading, even if you are strapped for time and only have an hour to spare each day!
What are the forex market hours?
The forex market is operational twenty-four hours a day, seven days a week, all over the world.
The market starts on Monday at 8:00 am local time in New Zealand, with one of the main periods beginning at 9:00 am local time in Sydney, which is 10:00 pm GMT on Sunday.
At 9:00 pm on Friday, the forex market will shut for the week.
Although the three major sessions where activity is at its peak are the European trading session (London), the Asian trading session (Tokyo), and the North American trading session.
- Sydney opens at 9:00 pm and closes at 7:00 am GMT or 7:00 am and 5:00 pm local time, respectively.
- Tokyo starts at 11:00 pm and closes at 9:00 am GMT or 8:00 am and 6:00 pm local time, respectively.
- London starts at 8:00 am and closes at 6:00 pm GMT, or 9:00 am and 7:00 pm local time, respectively.
- At 1:00 pm and 11:00 pm GMT, or 9:00 am and 7:00 pm local time, respectively, New York opens and closes.
How do daylight savings times affect forex market trading hours?
The normal forex market trading hours are impacted by daylight savings times. Trading hours will be adjusted due to daylight savings during November and March.
The four major markets’ opening and closing times for the forex market during daylight savings are as follows:
- Sydney is available from 10:00 pm to 8:00 am GMT or 9:00 am and 7:00 pm local time.
- Tokyo is available from 11:00 pm to 9:00 am GMT or 8:00 am and 6:00 pm, respectively, local time. Daylight savings time has no impact on Tokyo hours.
- London is open from 7:00 am to 5:00 pm GMT, or 7:00 am and 5:00 pm, respectively, local hours.
- New York is available from 12:00 pm to 10:00 pm GMT, or 7:00 am and 5:00 pm, respectively, local hours.
Between November and March, these forex trading hours apply. (Winter).
In addition to the four minor sessions that should be taken into account in this global market, we have listed the major forex sessions:
- New Zealand: Open until 10:00 night and shut down at 6:00 GMT
- Frankfurt is open from 7:00 am to 4:00 pm. GMT
- Hong Kong is available from 1:00 am to 10:00 am GMT.
- Singapore: Open at 1:00 am and shut at 10:00 am.
Why is the forex market open all the day
The forex market is one of the few financial markets with the luxury of being open around the clock, five days a week. This is brought on by the various time zones around the world and the fact that trading takes place over a network of computers rather than at actual, physically present marketplaces.
According to the BIS’s 2019 triennial survey, the amount traded on the forex market is much larger than any other market due to its extended trading hours, with $6.6 trillion being traded daily.
Over 170 different currencies are exchanged on the worldwide forex market, according to the same study.
When does the forex market open?
The international dateline marks the formal start of a new calendar day, so the forex market starts first in New Zealand on Monday at 8:00 am local time, which is Sunday at 7:00 pm GMT.
Even though trading actually starts in New Zealand, the first trading activity of the week is known as the Sydney session.
When do the forex market sessions overlap?
There is a moment when the sessions for forex trading overlap. These are generally the most engaging times of the day just because there is more volume in the market with two sessions open simultaneously.
The following overlaps the forex market session:
- London and New York: 1:00 pm to 5:00 pm GMT
- GMT: 1:00 am to 7:00 am for Sydney and Tokyo
- 8:00 am to 10:00 am GMT in London and Tokyo
When trading the EUR/USD and GBP/USD pairs between 1:00 pm and 5:00 pm GMT, you might notice a lot of liquidity because both of those currencies’ markets are currently active.
This is also the reason why the European session open, when the majority of the major currency pairs are traded, is regarded as the most liquid and active trading session. This includes EURUSD, GBPUSD, USDCAD, USDJPY, and AUDUSD.
Why are the opening and closing hours important?
Finding out when markets open is crucial in organizing your trading plan because there are numerous trading strategies and styles.
For instance, some traders might use a trading approach that is currency-focused. They will concentrate on the Japanese Yen as a result when the Tokyo forex session starts. Similar to this, the focus of the London and New York forex sessions will shift to the fluctuations of the USD and/or GBP.
Every trader should be aware of picking the best time that fits his trading style and strategy because numerous trading chances and volatility levels emerge throughout the day.
Holding forex positions over the weekend and major holidays?
Yes, you can keep all of your forex positions open on weekends and major holidays.
However, the market’s start or closure times could be modified due to a lack of liquidity or pricing updates. Traders who keep open positions over the weekend must know that these positions are susceptible to the increased risk when significant events occur during the market’s closure.