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Posted on Sep 13, 2020 at 10:17 PM
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FOREX MARKET OPEN & CLOSE TIMES ( 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, wrong timing can reduce your chances of success.

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

In this article, 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 our preferred trading hours are between 07:00 am and 10:00 pm Nigerian 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.

Why is Forex market open time important?

The Fx market Open time is important because it’s a global market with global players. You’re probably aware that the forex market is open 24 hours a day and 5 days every week (Mondays to Fridays).

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 & over-lap 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.

For Example, trading the GBP & EUR pairs during the London/Europe Session. This makes intuitive sense: most of the country's citizens and institutional trading houses who have an interest in that currency will be awake at this time and that’s when they’ll be trading heavily. Imagine the trade traffic at that time.

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 10:00 pm. 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 the best times to trade. Maybe not so true during the week, but particularly true on the first and the last session of the week.

The volume picks up a few hours after the Sydney/Australian/New Zealand session Opens and the Tokyo/Asian session opens next. But the most heavily traded period in the forex market is when the London and New York sessions overlap. This is so favourable to us here in Nigeria because that’s also our most active day-time hours. 

What time does the Forex market open?

The forex market opens for the week at 10:00 pm Nigerian time every Sunday. This corresponds with 11:00 pm from roughly October to March and 10:00 pm for 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 10:00 pm Nigerian Time every Friday. This time corresponds with 11:00 pm during the months from November to March and 10:00 PM 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.

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

(Nigerian Time)

SESSION CLOSE

(Nigerian Time)

Sydney

Australia

10:00pm

7:00 am

Tokyo

Japan / UTC

12:00am

9:00 am

London

Europe / GMT

7:00/8:00 am

5:00 am

New York

USA / EST

1:00pm

10:00pm



In Summary

The global Forex market continues to operate 24 hours a day across the world. This offers incredible availability with regard to being able to trade any time you want. However, you should be aware of these Open and Close 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.

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.

They say every trader has his/her favourite session and pairs, tell us yours in the comment section below!

 

 

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