As interest in forex trading grows, it is common to find new traders asking if the forex market is open 24 hours throughout the weekdays. After knowing that it does, many will ask, “How is that possible?”
It is a relatively simple concept as forex lacks a central exchange, which allows trading to move from one country to the other easily as the trading sessions of each market overlap perfectly. This occurs from Monday to Friday and halts on the weekends when the world’s major banks are closed.
As a result, the Forex market is usually classified by four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. With these trading sessions covering multiple time zones, forex traders can benefit heavily by trading anytime.
It is also why forex trading is so attractive to so many. If one is strapped for time and only has an hour allocated each day, there will still be a market that is open and ready regardless!
What are the opening and closing hours?
Here is a quick checklist for the four major markets:
Do note that the timings may vary slightly depending on the time of the year as time zones change.
There are several hours when two sessions overlap:
For example, there might be better results when trading both the EUR/USD & GBP/USD currency pairs between 1:00 pm and 5:00 pm GMT because both markets for those currencies are currently active.
Moreover, this is also why the London open is considered as the most liquid and active trading session because a majority of the major currency pairs are traded during this time. This includes the GBPUSD, EURUSD, USDJPY, USDCAD, and AUDUSD.
Why are the forex markets’ opening and closing hours important?
Some traders may employ a currency focused trading strategy. Thus, when the Tokyo forex session opens, they will focus on the Japanese Yen. Likewise, when the London or New York forex sessions open, they will switch toward the movement of the USD and/or GBP.
With many trading opportunities appearing throughout the day, picking the best time that suits your trading style and strategy is something that every trader should take note of.
The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
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