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Welcome to Forex Market Hours?


What Are Forex Market Hours?

Foreign exchange (forex) market hours are the specified periods of time when traders and investors are able to conduct transactions in the foreign exchange market. The forex market is open five and a half days a week due to an overlap in hours, but local exchanges are closed during the weekend.These international currency markets are vital to facilitating business across the globe and are made up of banks, commercial companies, central banks, investment management firms, and hedge funds, as well as retail forex brokers and investors.

KEY TAKEAWAYS

  • Forex market hours are the hours when markets for forex trading are open.
  • The forex market is available for trading 24 hours a day except on weekends.
  • The forex market is decentralized and driven by local sessions, four in particular: Sydney, Tokyo, London, and New York.
  • Trading volume varies from session to session, although the highest volume tends to occur when the London and New York sessions overlap.
  • The benchmark spot and forward exchange rates, used for daily valuation and pricing by many money managers and pension funds, are set at 4 p.m. London time.

Understanding Forex Market Hours

Forex market hours are the hours during which forex market participants all around the world can buy, sell, exchange, and speculate on global currencies. The forex market is open 24 hours a day during weekdays but geographically closes on weekends.

The international currency market isn't dominated by a single market exchange. It involves a global network of exchanges and brokers around the world.Specific Sessions and High-Volume Hours Forex market trading hours are based on when trading is open in each participating country. While time periods overlap, it is generally accepted that the following periods are the most active for each region: 
  • New York: 8 a.m. to 5 p.m. (EST)
  • Tokyo: 7 p.m. to 4 a.m. (EST)
  • Sydney: 3 p.m. to 12 a.m. (EST)
  • London: 3 a.m. to 11 a.m. (EST)

The chart below shows the actual hours that markets in each region are open in the global standard UTC time and where those sessions overlap.

It is during this period that the WM/Reuters benchmark spot and forward foreign exchange rates are determined. The rates, which are set at 4 p.m. London local time, are used for daily valuation and pricing by many money managers and pension funds.

Forex trading starts in New Zealand but is called the Sydney session. 

Special Considerations

Most Popular Currencies

While the forex market is a 24-hour market, some currencies in several emerging markets are not traded 24 hours a day. 

The seven most traded currencies in the world are the U.S. dollar, euro, Japanese yen, British pound, Australian dollar, Canadian dollar, and Swiss franc. All trade continuously while the forex market is open. Speculators from all over the world typically trade forex in currency pairs involving these seven currencies and favor trading times with heavier volume.

High Volume and Pricing Efficiency

When trading volumes are heaviest, forex brokers will provide tighter spreads (bid and ask prices closer to each other), which improves pricing efficiency and reduces transaction costs for traders.

Likewise, institutional traders also favor times with higher trading volume, though they may accept wider spreads for the opportunity to trade as early as possible in reaction to new information they have.

Despite the highly decentralized nature of the forex market, it remains an efficient transfer mechanism for all participants and a far-reaching access mechanism for those who wish to speculate from anywhere on the globe.
Which Forex Market Is Open 24 Hours?                                       None of the exchanges are open 24 hours, but their overlaps create a 24-hour market on weekdays. In Coordinated Universal Time (UTC), they are 7 a.m. to 4 p.m. (the London market), 1 p.m. to 10 p.m. (the New York market), 9 p.m. to 6 a.m. (the Sydney market), and 12 a.m. to 9 a.m. (the Tokyo market).

Can I Trade Forex With $100?

Yes. You can start with as little as $1 and build your trades up over time.

Is Forex a Good Investment?Forex trading can be rewarding, but whether it is a good investment or not depends on your goals, strategy, and financial circumstances.                   The Bottom Line                            The forex market is open for certain hours during sessions in participating countries. When taken together, these market hours allow for 24-hour trading, five and a half days a week. Forex markets in each geographical region are closed during the weekend, but traders can still trade during their region's weekend times on other exchanges.
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