Forex Market Hours That Must Be Remembered

As interest in forex trading rises, it is usual for novice traders to ask queries such as “When does the forex market open？” When people learn that the forex market is open 24 hours a day, five days a week, their next thought is, “How is that possible？”

Because the forex market lacks a central exchange, forex trading “follows the sun,” moving from one nation to the next while trading sessions continue, so that each market neatly overlaps.

Foreign exchange market hours are generally from Monday to Friday and are halted on weekends when the main institutions are closed.

As a consequence, the forex market is normally divided into three primary trading sessions: Tokyo, London, and New York. Because these sessions span various time zones, forex traders may reap the rewards of forex trading at any time.

Even if you are short on time and just have an hour to spare each day, there will be a market open and ready to trade!

What time does the FX market open and close？

• The currency market is open throughout the globe 24 hours a day, five days a week.

• The market starts in New Zealand at 8:00 a.m. local time on Monday, followed by the opening of one of the main trading sessions in Sydney at 9:00 a.m. local time on Monday, which is 10:00 p.m. GMT Sunday.

• The currency market will subsequently shut for the weekend on Friday at 9:00 p.m. GMT.

The Sydney session is often referred to as the first session of the week, however, the three primary sessions with the most activity are the Asian trading session (Tokyo), the European trading session (London), and the North American trading session (New York).

The following are the forex market hours for the four main markets:

• Sydney is open from 9:00 p.m. to 7:00 a.m. GMT, which corresponds to 7:00 a.m. and 5:00 p.m. local time.

• Tokyo is open from 11:00 p.m. to 9:00 a.m. GMT, or 8:00 a.m. to 6:00 p.m. local time.

• London is open from 8:00 a.m. to 6:00 p.m. GMT, or 9:00 a.m. to 7:00 p.m. local time.

• New York is open from 1:00 pm to 11:00 pm GMT, or 9:00 am to 7:00 pm local time.

These currency trading hours apply to the months of April and October (Summer).

Is the FX market affected by daylight savings time？

Yes, the usual currency market operation hours are affected by daylight savings time. Due to daylight savings, trade hours will be altered between November and March.

The following are the opening and closing forex market hours for the four main markets during daylight savings:

• Sydney is open from 10:00 p.m. to 8:00 a.m. GMT, which corresponds to 9:00 a.m. and 7:00 p.m. local time.

• Tokyo is open from 11:00 p.m. to 9:00 a.m. GMT, or 8:00 a.m. to 6:00 p.m. local time. (Daylight savings time does not affect Tokyo hours.)

• London is open from 7:00 a.m. to 5:00 p.m. GMT, which corresponds to 7:00 a.m. and 5:00 p.m. local time.

• New York is open from 12:00 noon to 10:00 pm GMT, which is 7:00 am and 5:00 pm local time.

These currency trading hours apply to the months of November and March (Winter).

We've highlighted the key forex sessions, but in this global market, there are also four lesser sessions to consider:

• New Zealand-Begins at 10:00 p.m. and ends at 6:00 a.m. GMT

• Frankfurt is open from 7:00 a.m. to 4:00 p.m. GMT.

• Hong Kong is open at 1:00 a.m. and closes at 10:00 a.m. GMT.

• Singapore—Begins at 1:00 a.m. and closes at 10:00 a.m. GMT

Why is the FX market open 24 hours a day？

The forex market is one of the few financial markets that may stay open 24 hours a day, five days a week. This is due to the many foreign timezones with trading taking place across a network of computers rather than physical centralized exchanges.

With such longer trading hours, the forex market trades much more than any other market, with $6.6 trillion exchanged per day, according to the BIS's 2019 triennial study.

According to the same poll, approximately 170 currencies are traded on the worldwide currency market.

When does the foreign exchange market open？

The international dateline marks the official start of a new calendar day, therefore the FX market in New Zealand opens first on Monday at 8:00 a.m. local time, which is Sunday at 7:00 p.m. GMT.

Despite the fact that trading begins in New Zealand first, the first trading session of the week is known as the Sydney session.

When do forex trading sessions overlap？

There are times when forex trading sessions overlap. These are often the busiest periods of the day since the forex market has a higher trading volume when two sessions are active at the same time.

The following currency market sessions overlap:

• New York and London: 1:00 p.m.—5:00 p.m. GMT

• 1:00 a.m.—7:00 a.m. GMT in Sydney and Tokyo

• 8:00 a.m.—10:00 a.m. GMT in London and Tokyo

For example, if you trade the EUR/USD and GBP/USD currency pairings between 1:00 pm and 5:00 pm GMT, you may notice a high amount of liquidity since both markets for those currencies are now active.

Furthermore, since the bulk of the main currency pairs is traded around this hour, the European session open is considered the most liquid and busy trading period. GBPUSD, EURUSD, USDJPY, USDCAD, and AUDUSD are all examples.

When and why is the ideal time to trade forex？

Because the market is more active when the forex market is open throughout many sessions during an overlap, this is the greatest time to trade forex. Because currency pairings' prices fluctuate more often when there are more FX traders in the market, there are more chances. But keep in mind that more volatility means increased risk.

Currency pairings tend to have narrower pip spread movement when just one forex market session is open, however, a trading session with two markets active might offer more pips movement.

In general, the ideal forex session overlaps to trade are between 1:00 pm and 5:00 pm GMT in New York and London. The US Dollar and the Euro are the two most popular currencies to trade at the moment, which makes sense given that more than 70% of all deals occur when the two largest markets overlap and price activity is likely to be greater.

Before you delve into these trading sessions, it is always a good idea to learn more about how forex trading works and how to trade forex.

What holidays have an impact on the FX market？

Christmas and New Year's Day are two holidays that cause the currency market to be closed. On Christmas Day, the market is officially closed.

Other occasions throughout the year might influence the forex market and certain currency pairings, for example, Japanese holidays can affect the Yen but not other currencies.

You can keep track of global economic announcements by using the FX economic calendar. Also, make sure you understand how to interpret the economic calendar so you are informed of any upcoming key events or news.

As there are numerous trading tactics and trading styles, understanding when markets open is a vital step in structuring your trading strategy.

Some traders, for example, may utilize a currency-focused trading approach. As a result, when the Tokyo forex session begins, they will be focused on the Japanese Yen. Similarly, when the London or New York forex sessions begin, their focus will shift to the movement of the USD and/or GBP.

With so many trading chances and volatility levels coming throughout the day, every trader should take note of the ideal time that matches their trading style and plan.

What are forex trading gaps？

Over the weekend, there are gaps in forex trading since the currency market is closed and no trading takes place. Even though the market is not open seven days a week, prices might fluctuate on the two days when no trading occurs.

Currency prices may still rise or fall inside these “gaps” in regular trading, thus some traders have developed trading systems to capitalize on this phenomenon. Sudden price fluctuations may also occur during this period, generally as a result of a large economic or environmental disaster that has a significant impact on the value of a currency.

When am I able to trade FX with Axi？

Forex pricing at Axi is presently conducted from Monday 00:00 to Friday 24:00. (MT4 Server Time). Different brokers may operate at different periods inside the market.

Can I maintain trades in forex throughout the weekend and big holidays？

Yes, you may hold all FX positions throughout the weekend and during significant holidays.

However, owing to a lack of liquidity or price adjustments, the market's open or closing timings may be revised. Traders who have open positions over the weekend should be aware that they are vulnerable to greater risk if big events occur during the market shut down.

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