When Is the Forex Market Closed? Trading Hours & Holidays
Discover the intricate schedule of the global forex market, including its continuous operation, weekend closures, and holiday impacts on trading.
The foreign exchange (forex) market stands apart from traditional stock exchanges due to its unique operating hours. This global marketplace, where currencies are traded, is characterized by its decentralized nature and high liquidity. Unlike stock markets with fixed daily opening and closing times, the forex market maintains an extended period of operation, offering accessibility for trading across a significant portion of the week. This continuous environment is a direct result of its worldwide participants and diverse time zones.
Understanding Regular Trading Hours
The forex market operates continuously, 24 hours a day, five days a week. Trading typically begins on Sunday evening at 5:00 PM Eastern Time (ET) and concludes on Friday evening at the same time. This weekend period, from Friday evening to Sunday evening, represents the primary time when the market is not actively trading for most participants.
Effects of Public Holidays
Public holidays in various countries can significantly influence the forex market, affecting trading activity beyond the regular weekend closures. While the entire global market does not typically shut down for a single holiday, trading volume and liquidity often decrease around major public holidays observed in key financial hubs. For instance, global holidays like Christmas Day and New Year’s Day see most major currency markets closed. National holidays, such as Thanksgiving in the United States or Lunar New Year in Asian countries, can also lead to reduced trading in their respective currency pairs. This reduction in liquidity can result in wider bid-ask spreads, making transactions more costly, and may contribute to increased volatility.
Global Market Sessions and Time Zones
The continuous 24/5 operation of the forex market is enabled by the strategic overlap of trading sessions across different global time zones. As one major financial center concludes its business day, another opens, maintaining a seamless flow of trading activity. The four primary trading sessions are named after major financial centers: Sydney, Tokyo, London, and New York. For example, the Sydney session opens when it is still Sunday evening in the United States, followed by Tokyo, then London, and finally New York. Even if a local financial center is closed for a holiday or weekend, the global forex market continues to operate through other active centers, and overlaps between these sessions, such as the London and New York overlap, often experience higher liquidity and trading volumes.