What Time Does Forex Market Close On Friday

Forex, or foreign exchange, is the largest financial market in the world, with trillions of dollars traded each day. Due to its global nature, the forex market operates 24 hours a day, five days a week. However, like all financial markets, it has specific trading hours, and traders need to be aware of the opening and closing times. In this article, we will discuss what time the forex market closes on Friday, including the significance of this time and how it can impact traders.

What Time Does Forex Market Close On Friday
What Time Does Forex Market Close On Friday

The Forex Market Hours

The forex market is a decentralized market, which means that it has no physical location or exchange. Instead, it operates through a network of global banks, financial institutions, and individual traders. This means that the forex market can be accessed 24 hours a day, from Monday to Friday.

The forex market is open from 5 pm EST on Sunday to 5 pm EST on Friday. During this time, traders can buy and sell currencies from different parts of the world, regardless of their location. However, there are specific trading sessions within these hours that are more active than others.

The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. These sessions are named after the major financial centers in the world where the trading activity is concentrated. The Sydney and Tokyo sessions are the least active, while the London and New York sessions are the most active.

What Time Does Forex Market Close on Friday?

The forex market closes at 5 pm EST on Friday, marking the end of the trading week. After this time, traders cannot buy or sell currencies until the market opens again on Sunday evening.


It is essential to note that the forex market closing time on Friday is not the same as the stock market closing time. The stock market closes at 4 pm EST on weekdays, while the forex market remains open for an additional hour. This extra hour of trading can be significant for forex traders, as it allows them to take advantage of any last-minute price movements before the weekend.

The Significance of Friday Close

The forex market closing time on Friday is significant for several reasons. Firstly, it marks the end of the trading week and the beginning of the weekend. This means that traders need to close any open positions before the market closes to avoid any unexpected price movements over the weekend and large market gaps.

Secondly, the forex market closing time on Friday can also impact the trading activity in the preceding hours. As traders close their positions before the weekend, the market may experience increased volatility or liquidity. This can result in significant price movements, which can be either beneficial or detrimental to traders.

Finally, the forex market closing time on Friday can also affect the opening price on Sunday evening. If there is any significant news or events over the weekend that affects the market, the opening price on Sunday evening may be different from the closing price on Friday. This can lead to gaps in the price, which can be both profitable or harmful to traders, depending on the direction of the gap.

Conclusion

In summary, the forex market is open 24 hours a day, five days a week, and it closes at 5 pm EST on Friday. The closing time is significant for traders as it marks the end of the trading week, and traders need to close any open positions before the weekend. The closing time can also impact the trading activity in the preceding hours and affect the opening price on Sunday evening. As such, it is crucial for forex traders to be aware of the closing time and its implications on their trading strategies.


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