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Forex Market Hours and Sessions in 2021

For a new trader, knowing the Forex market hours is critical.

You must be aware of the opening and closing times of the Forex market, as well as the four global sessions.

You will have a complete understanding of the Forex hours and sessions once you have finished reading this post.

Let’s get started!

Forex Trading Hours

You might be wondering why, if Forex is a 24 hour market, I can only trade Monday through Friday.

This leads me to a common misunderstanding in the Forex world: that the market is closed on weekends. The Forex market, in reality, never closes. The only thing that remains is retail traders’ ability to participate.

You might be wondering what a retail trader is. Simply put, a retail trader is someone who buys or sells for their own account rather than for the benefit of another business or organization. You are a retail trader unless you are an institutional trader.

Despite the fact that retail traders are unable to participate on weekends, the Forex market as a currency exchange remains active.

When the market opens at the start of the week, this is what causes so-called “gaps.” It’s simply the result of your broker’s charts being updated from the previous week’s price action to the current price action at the beginning of the trading week.

Gaps will be discussed in a later lesson. For the time being, just remember that the market never closes due to the needs of international trade, central banks, and global industries to conduct business.

So what time does the Forex market open?

Every Sunday at 5 p.m. EST, the Forex market opens for retail trade. After that, it closes every Friday at 5 p.m. EST.

Each day’s Forex hours are made up of various sessions that take place all over the world. Let’s look at those market sessions in more detail.

Forex Market Sessions

There is always at least one active trading session because this is a 24 hour market. These sessions can even cross over at times.

Imagine the earth in relation to the sun to get a better idea of how these Forex market sessions work. The Forex market is open wherever the sun shines. Of course, this is a simplified way of thinking about it, but it does assist in visualizing the Forex hours in this manner.

  • The chart below depicts the four sessions of the Forex market in Greenwich Mean Time (GMT).
  • In Eastern Standard Time, here’s a breakdown of the chart above:
  • New York is open from 8:00 a.m. to 5:00 p.m. Eastern Standard Time.
  • Tokyo is open from 7:00 p.m. to 4:00 a.m. (EST).
  • Sydney is open from 5:00 p.m. to 2:00 a.m.
  • London is open from 3:00 a.m. to 12:00 p.m. EST.

As the chart above shows, there are several market sessions that overlap. The London / New York overlap is the most obvious and heavily traded. Because many Forex market participants prefer to trade during this time, liquidity is at its peak.

What Are the Best Forex Trading Hours?

When is the best time to trade? is one of the most commonly asked questions among Forex traders. It all depends on your trading style and lifestyle, as it does with most things. Obviously, if you live in a part of the world where the London and New York sessions overlap at 3 a.m., this may not be the best option for you.

The great thing about trading price action on higher time frames is that it doesn’t matter what time of day it is or what market session it is in. If you see a bullish pin bar on the daily time frame, for example, you can simply place a pending order and let the market decide what to do with it. It makes no difference which session initiates the order.

The Advantages and Disadvantages of a 24-Hour Forex Market

As with most things, there are benefits and drawbacks to the Forex market being open 24 hours a day.

However, I should point out that the disadvantages usually apply to those who are just starting out. In fact, I am confident in stating that the disadvantages listed below are what make the Forex market one of the most difficult markets for a novice trader to master.

Advantages of a 24-Hour Forex Market:

  • It allows you to trade at any time of day, regardless of where you live.
  • Unlike the stock market, there are very few gaps from day to day.
  • Even during slower sessions, there is more liquidity.

Disadvantages of a 24-Hour Forex Market:

  • Because the Forex market is open 24 hours a day, traders may over-think their positions.
  • Because the Forex market never closes, it takes more self-discipline to take breaks from trading.

Because the Forex market is open 24 hours a day, it is easy to overtrade.

You may find yourself waking up early or staying up late just to place trades, rather than trading for a few hours each day.

That’s a terrible idea!

In addition, many new traders find it difficult to step away from the market.

They feel compelled to keep an eye on their positions 24 hours a day, seven days a week.

The fact that the Forex market never closes makes this one of the more destructive habits of new traders.

The good news is that these drawbacks can be easily overcome with the help of a well-structured Forex trading course, discipline, and plenty of practice

Final Words

I hope that this lesson has clarified the topic of Forex market hours and the various market sessions that make up a 24-hour period.

Here are some key points to remember:

  • The Forex market is open 24 hours a day, 7 days a week, and technically never closes.
  • The term “retail trader” refers to someone who trades for their own account.
  • The Forex market’s retail trading hours are from 5 p.m. EST on Sunday to 5 p.m. EST on Friday.
  • The Forex market hours are divided into four sessions: London, New York, Sydney, and Tokyo.

Most Asking Questions About Forex Market Sessions

What are the hours of the Forex market?

The Forex (currency) market opens on Sunday at 5 p.m. EST and closes on Friday at 5 p.m. EST for retail traders like you and me.

When does the foreign exchange market open?

Every Sunday at 5 p.m. EST, the Forex market opens.

What are the different types of Forex market sessions?

  • In the Forex market, there are four sessions:
  • New York is open from 8:00 a.m. to 5:00 p.m. Eastern Standard Time.
  • From 7:00 p.m. to 4:00 a.m. EST, Tokyo is open.
  • From 5:00 p.m. to 2:00 a.m. EST, Sydney is open.
  • From 3:00 a.m. to 12:00 p.m. EST, London is open.

Why does the Forex market close on weekends?

Believe it or not, the Forex (currency) market never closes. It’s a 24-hour market that’s open 7 days a week. However, retail traders like you and I can only trade the hours between Sunday at 5 pm EST and Friday at 5 pm EST.