The forex market is a 24-hour market that operates five days a week, from Monday to Friday. However, the market is not open 24 hours a day. It operates in different time zones and has specific trading hours for each region. As a result, the time at which the forex market closes depends on the time zone in which you are located.
The forex market opens on Sunday at 5:00 PM EST (Eastern Standard Time) and remains open until Friday at 5:00 PM EST. This is because the market operates on a rolling 24-hour basis, with each trading day beginning in the Asia-Pacific region and then moving to Europe and finally to North America.
The trading hours for each region are as follows:
- Asia-Pacific: The forex market opens on Sunday at 5:00 PM EST and closes on Friday at 4:00 PM EST. This region includes major financial centers such as Tokyo, Hong Kong, and Singapore.
- Europe: The forex market opens on Sunday at 5:00 PM EST and closes on Friday at 11:00 AM EST. This region includes major financial centers such as London, Frankfurt, and Paris.
- North America: The forex market opens on Sunday at 5:00 PM EST and closes on Friday at 5:00 PM EST. This region includes major financial centers such as New York, Chicago, and Toronto.
It is important to note that during the overlap of trading hours between different regions, there tends to be higher trading volume and volatility in the market. For example, when the European and North American sessions overlap from 8:00 AM EST to 12:00 PM EST, there tends to be higher liquidity and volatility in the market.
In conclusion, the forex market closes on Friday at 5:00 PM EST and remains closed over the weekend. The market operates in different time zones, and the closing time depends on the region in which you are located. Traders should be aware of the trading hours in their region and the overlap with other regions to make informed trading decisions.