When Does The Forex Market Open

When Does the Forex Market Open

For investing in the right trades at the right time, it is essential to know When does the Forex market open. FX market is regarded as 24 hours and 5 days market. However, practically every session of the market opens at a different time. To determine the best time to Trade Forex, let us first understand Forex Market Hours.

What is Forex Market Hours?

The FX Market is the biggest financial market in the world, where large numbers of traders are indulged in buying and selling currency pairs. Trading in Forex is a very complex process. Forex Trade opens in New Zealand, then goes to Asia, and ends in America.

A forex trader can execute a trade at any time. However, the time of trading plays a very significant role in order to earn profit from the trade. Therefore the right knowledge of when does the Forex market open is important to trade.

Retailers can trade in the Fx market from Sunday at 5:00 pm EST to Friday at 5:00 pm EST. However, technically forex market never closes. As there are four forex sessions, and at any point of the day, there is at least one of them open.

The market hours for trade in Forex are from Monday to Friday. Generally, trading stops on weekends as major banks remain closed at that time. However, trading in Forex opens daily, as it is executed over the internet.

Here's a quick look at what you'll read

Foreign exchange markets are open 24 hours a day throughout the world, from 5 p.m. EST on Sunday until 4 p.m. EST on Friday.

Forex trading session generally consists of four sessions: the Sydney session, Tokyo session, London Session, and the New York session. The Sydney and Tokyo sessions are commonly referred to as Asian sessions. Because of this, Forex is often referred to as the 3-session market: Asian, London, and New York.

A session overlap occurs when two market sessions cross each other. In other words, it is when the Asian session intersects with the European session. Additionally, this is the time when the American and European markets intersect.

  • Sydney and Tokyo sessions overlap: 1:00 AM to 7:00 AM GMT
  • London and Tokyo sessions overlap: 8:00 AM to 10:00 AM GMT
  • New York and London sessions overlap: 1:00 PM to 5:00 PM GMT

Why is the Forex Market said to be Open 24 Hours per Day?

The foreign exchange market is open 24 hours a day, five days a week. The largest financial market is made up of central banks, other banks, commercial companies, investment management firms, retailers, forex brokers, scalpers, and investors.

There are four sessions in Forex Market. The closing and opening time of each session is different. However, it is said to be open 24 hours a day due to different time zones. At any time, at least one market remains open for a trader to trade.


Let us understand it with an example, suppose a forex trader who is a resident of Australia wants to trade in Forex at 3: 00 am. But at that time, he is not able to trade with the traders in Australia. In this case, he can trade with European or North America.

Basically, when one market session is closed, the other out of the remaining three remains open. As a result, fx market players can execute a trade without taking factors like day or night into mind.

Forex Market Sessions

There are four major forex trading sessions which include the London session, the New York session, the Sydney session, and the Tokyo session. London and New York Sessions are the busiest sessions. The sessions are divided into Asian, European, and North American sessions.

Sydney and Tokyo sessions are commonly known as Asian sessions. London and New York sessions are commonly referred to as European and North American sessions. Here is a list of forex market Hours on the basis of different time zone, such as Forex Market hours for GMT (Greenwich Mean Time) or EST (Eastern Standard Time).

• Sydney Session: 5 pm to 2 am EST, 9 pm to 7 am GMT
• London Session: 3 am to 12 noon EST, 8 am to 6:00 pm GMT
• New York Session: 8 am to 5 pm EST, 1 pm to 11 pm GMT
• Tokyo Session: 7 pm to 4 am EST, 11 pm to 9 am GMT

How to determine the Best Time to Trade Forex

As we have studied forex market is a fully electronic market. Each Forex session has its unique trading hours from Monday to Friday. In this case, it became very difficult for a trader to find out about the right forex hours for trading. The foreign exchange market is open 24 hours a day, five days a week.

However, it does not mean a trader can trade in currencies anytime without studying the market. Before investing in Forex, a trader needs to keep in mind things like when does the Forex market open, what is the best time to trade, the best time for trading in a particular currency pair, and when do the two sessions working simultaneously.

It is said to avoid trading when only one trading session is open. The best time for traders is to trade when the two major market sessions are open at the same time. When two or more sessions open at the same time, that duration is known as overlap. At that time, large numbers of traders actively buy and sale the currency pairs. During the overlap of the London and New York trading sessions, more than 50% of forex transaction takes place at these two financial centers.

When do the forex market sessions overlap?

The best time to trade in the forex market is when it is most active, which means at that time when large numbers of traders are trading. Forex traders became active during the overlap of two sessions.

For traders who are wondering when Forex market sessions open simultaneously. Here is the duration of overlapping of these major market sessions during the day.

Forex Session Overlap timing in GMT

• Sydney and Tokyo session overlap: 1:00 am to 7:00 am GMT
As compared to the US/London overlap, this is a less volatile time to trade; however, as compared to London and Tokyo overlap, it is more volatile. During this time, pip fluctuation is comparatively higher.

• New York and London session overlap: 1:00 pm to 5:00 pm GMT
The New York and London overlap session sees the heaviest overlap in the market as more than 70% of all trades were executed at that time. The reason behind the increase in trade during this overlap is that the US dollar and the euro are the two major and popular currencies.

• London and Tokyo Session Overlap: 8:00 am to 10:00 am GMT
Overlap is considered the best time for trade. However, during London and Tokyo, the least amount of action is executed as compared to the other overlap sessions, and the reason behind this is most of the US Brokers are sleeping during this time. The time for overlap is also very little to execute trade accordingly.


How to calculate Forex Market Hours

Every Forex Trading Session opens and closes at different times. The time of their opening, closing, and overlapping differ on the basis of time zone. It is very important for a forex trader to have a knowledge of When does the Forex market open. In order to find out the best operating hours for trading, a trader needs to calculate the opening and closing times of all forex sessions.

The Forex Market Time Zone Converter is one of the best and most popular platforms specially designed for forex traders to calculate the best time for trade. This platform shows trading sessions with their open and close local time. It displays Open or Closed status in order to state the current condition of the major forex trading sessions.

A trader needs to concentrate on the trading hours of Tokyo, London, and New York as these are the busiest sessions, and most of the forex trading takes place during this time.

According to the belief of various experienced traders, certain hours in the forex market are more liquid with tighter spreads, and therefore, various trading strategies are formed on the basis of time frame. The more illiquid the market, the more the risk and vice-versa. So it is important for a trader to watch the trends of these forex sessions.

Forex trading on Holidays and Weekends

One of the most common questions of forex traders is whether Holidays or weekends affect the market, and the answer is it does affect the forex market. One can trade in all positions during Holidays.

However, if you are trading on holidays, you need to remember that the amount of risk is comparatively more than on weekdays. If you are a beginner in forex trading, then you should not trade in Forex during important holidays as it is very difficult to predict the market due to unreliable signals and trends.

The time of weekends is also regarded as a gap in forex trading. During weekends the forex market remained closed, and no trading took place during that time. However, the change in the price of currencies takes place even on weekends. The values of currencies fluctuate on all seven days of the week, and the forex market opens for five days. Therefore some traders even made strategies to take advantage of these gaps.

Bottom Line: Timing is Everything

The foreign exchange market is open 24 hours a day, five days a week. A trader can execute the transaction on various digital platforms available for forex trading. However, just because a trader can invest money in the forex market at any point in time or place, it does not mean that he should invest without keeping the time factor in mind.

In forex trading, what to invest, where to invest, and when to invest, when the Forex market opens or closes are very important questions. If a trader does not keep forex market hours in his mind, then he may suffer a huge amount of loss. In order to make money in fx market, it is very important to keep an eye on the market condition and time.

A Forex Trader needs to remember one thing that time is everything. A forex trader can earn millions due to the execution of trade at the right time, and he can also lose millions only because of the timing of the transaction.

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