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What Time Does the Forex Market Open?

Posted by BluFX

 

What time does the forex market open

Here’s our guide to forex market open times, closing times - and why it matters. 

If you’ve ever spent time mastering a skill, you’ll know that no matter how much energy you put into learning that skill, if you don’t time your skill properly it can reduce your chances of success.

Don’t believe us? Consider this: you may have mastered the skill of trading currency pairs, but what counts is when you trade them. 

In this blog, we’ll cover:

  • When do the major forex market trading sessions open and close?
  • What time does the forex market open?
  • What time does the forex market close?
  • What is the significance of the forex market open time?

Note: please note that the BluFX authorised trading hours are between 0600 and 2100 London time - we pick trading times that statistically correspond to the most liquid period. This period is not directly related to the various sessions but corresponds roughly to London plus New York sessions. If you're trading with us, make sure you check London times (this is not always GMT - for example, BST during the summer!).

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Why is forex market open time important?

In short: the forex market open time is important because it’s a global market. You probably already know that the forex market is open 24 hours a day, five days a week. Since the market is closed on weekends, you might wonder what significance there is to the forex market open time during the week. 

Well, the thing that makes the forex market a 24-hour market is that it is a global market. The reason you can trade forex any time of day or night is the fact that forex trading sessions operate throughout the world.

During the week, these sessions overlap so that there is always some trading session open through which your forex order can be routed. It is the combined availability of these trading sessions that make forex a 24-hour a day market. Since these trading sessions correspond with cities and countries, they therefore correspond to national currencies. 

In terms of volume and volatility, there is usually more volume on a currency pair involving a national currency when the trading session for that country is underway. This makes intuitive sense: most of the country's citizens who have an interest in that currency will be awake at this time and that’s when they’ll be trading.

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When does the forex market open and close?

The forex market opens and closes at different times. The close of the forex market occurs when the New York trading session ends on Friday. The forex market is closed from this point until the open of the Sydney trading session on Sunday. 

The Sydney session opens a few hours before the Tokyo trading session, while the New York session keeps going for about five hours beyond the close of the London session. 

During these times when there is only one session open, the volume is very light and these are not usually considered good times to trade. This is true during the week, but particularly so on the first session of the week or the last session of the week.

The volume picks up a few hours after the Sydney session opens when the Tokyo session opens next. But the most heavily traded period in the forex market is when the London session and the New York session overlap.  

What time does the forex market open?

The forex market opens for the week at 8 A.M. Sydney time every Sunday. This corresponds with 11 P.M. UTC from roughly October to March and 10 P.M. UTC the rest of the year. 

Since Sydney’s session is the first session to open for the week, its opening time is the opening for the entire forex market each week.

What time does the forex market close?

The forex market closes for the week at 5 P.M. U.S. Eastern Time every Friday. This time corresponds with 10 P.M. UTC during the months from November to March and 9 P.M. UTC during the other months.. 

Since New York is the last session open before the weekend, the closing time of the New York session marks the closure of the forex market for the week.

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What time does each trading session open and close?

The four main forex trading sessions are Sydney, Tokyo, New York and London. In order to understand exactly when these sessions open and close, see the table below:

Session

Local Time Zone

Session Open (UTC) (varies)

Session Close (UTC)

(varies)

Session Open (EST)

Session Close (EST)

Session Open (Local Time)

Session Close (Local Time)

Sydney

Australia/Sydney

10 P.M.

7 A.M.

5 P.M.

2 A.M.

8 A.M.

5 P.M.

Tokyo

Asia/Tokyo

12 A.M.

9 A.M.

7 P.M.

4 A.M.

9 A.M. 

6 P.M.

New York

Americas/New York

1 P.M.

10 P.M.

8 A.M.

5 P.M.

8 A.M. 

5 P.M.

London

Europe/London

8 A.M.

5 P.M.

9 A.M.

6 P.M.

8 A.M.

5 P.M.

 

The local time is provided above so that you can easily search for the current time in that time zone. With Summer Time and Daylight Savings Time applying to some areas and not others, sometimes it is easier to figure out when sessions will open by comparing to your own particular time zone at that time. 

For example, the United Kingdom spends part of the year on Greenwich Mean Time/UTC, but during the summer months, it uses GMT+1 (British Summer Time).

Forex market open time: what you need to know

Since forex is a global market, it can continue to operate 24 hours a day across the world. This offers incredible availability with regard to being able to trade any time you want. But you should be aware of these opening and closing times for each trading session because they have an effect on the volatility and volume of currencies related to that timeframe.

The opening session of the forex market on Sunday and the closing session on Friday are typically slow periods with regards to volume and activity. On Sunday, most of the world is still enjoying their weekend. On Friday, the day traders have gotten out of the market and the swing traders have exited what positions they don’t want to pay weekend fees for. More than a few forex traders avoid trading on Fridays simply out of principle.

The complexities of time zones and daylight savings time can make it cumbersome to calculate exactly when sessions around the world are opening. The best way to know is to check your trading platform and see if it’s accepting trades.

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