The forex market opens Sunday evening and closes Friday afternoon in U.S. time

The foreign exchange market runs 24 hours a day, five days a week, but not all at once. It opens in Asia on Sunday evening (U.S. Eastern Time) and closes in New York on Friday afternoon. The market moves through four main trading sessions — Tokyo, London, New York, and Sydney — as the business day rolls around the globe. Each session has its own opening and closing times, and currency pairs trade with different volume and volatility depending on which session is active.

The reason the forex market never truly sleeps is that it operates across multiple continents. When traders in New York are closing their desks on Friday, traders in Tokyo are already starting their Monday morning. This overlap means you can trade currencies almost any time during the week, but the best times to trade depend on which currencies you are watching and how much volume you need.

Key Takeaways

  • The forex market opens Sunday at 5 p.m. Eastern Time with the Tokyo session and closes Friday at 4 p.m. Eastern Time with the New York close.
  • Four main sessions — Tokyo, London, New York, and Sydney — each have their own opening and closing times, and currency pairs move differently during each one.
  • The London and New York sessions overlap for one hour (1 p.m. to 2 p.m. Eastern Time), which is typically when the most trading volume occurs.
  • Currency pairs involving the U.S. dollar, euro, or British pound trade with the highest volume during the New York and London sessions.
  • Weekend gaps mean the market cannot open at the same price it closed on Friday, so prices can jump when Sunday evening trading begins.

The four main forex trading sessions and their times

The Tokyo session opens at 7 p.m. Eastern Time on Sunday and runs until 4 a.m. Eastern Time on Monday. This is the first major session of the week. It covers trading in Japan, Hong Kong, Singapore, and Australia. Currency pairs that include the Japanese yen, Australian dollar, and New Zealand dollar typically see the most movement during this window.

The London session opens at 3 a.m. Eastern Time and closes at 12 p.m. (noon) Eastern Time. London is the largest forex trading hub in the world, so this session usually brings the highest volume and the most volatility. Pairs involving the euro and British pound are most active during London hours.

The New York session opens at 1 p.m. Eastern Time and closes at 4 p.m. Eastern Time. This is the second-largest trading center. The overlap between London and New York (1 p.m. to 2 p.m. Eastern) is when the most total volume trades across all currency pairs, because both major hubs are active at the same time.

The Sydney session opens at 5 p.m. Eastern Time on Sunday and closes at 2 a.m. Eastern Time on Monday. It is the smallest of the four sessions by volume, but it is where the trading week actually begins. After Sydney closes, the market moves to Tokyo.

Why the market closes on weekends

The forex market does not trade on Saturday and Sunday because the major financial centers — New York, London, Tokyo, and Sydney — are all closed. Banks, brokers, and institutional traders do not operate on weekends, so there is no one to trade with. The market reopens Sunday evening when Sydney begins its Monday trading day.

The weekend gap creates a risk called gap risk. If major news breaks over the weekend — a central bank announcement, a geopolitical event, or economic data — the market cannot react until it reopens. When Sunday evening trading begins, prices may jump to a new level when ready, skipping over the prices in between. If you hold a position over the weekend, you have no way to exit it until the market opens again.

How to know if the market is open right now

You can check whether the forex market is currently open by looking at the time in the major trading centers. If it is a weekday and the time in New York, London, Tokyo, or Sydney falls within that session's hours, the market is open. Most forex brokers display a market status indicator on their trading platform that shows which sessions are active.

A straightforward rule: if it is between Sunday 5 p.m. Eastern and Friday 4 p.m. Eastern, and it is not a major U.S. holiday, the market is open somewhere. However, liquidity and volatility vary widely depending on which session is active. Trading during the London-New York overlap typically offers tighter spreads and faster execution than trading during the Tokyo session, because more volume is flowing through the market.

How daylight saving time affects forex market hours

The United States observes daylight saving time, which shifts Eastern Time forward one hour in spring and back one hour in fall. When the U.S. switches to daylight saving time (usually in March), forex market hours shift one hour earlier. When the U.S. switches back to standard time (usually in November), forex market hours shift one hour later.

Europe also observes daylight saving time, but it switches on different dates than the U.S. For a few weeks in March and October, the time difference between New York and London changes, which can make the overlap between sessions slightly different. Most forex brokers automatically adjust their displayed times, but it is worth double-checking your platform if you trade around the session transitions.

Why some currency pairs trade better during certain sessions

Different currency pairs have different peak trading times because they involve currencies from different regions. The EUR/USD (euro and U.S. dollar) pair trades most actively during the London and New York sessions, when both the European and American markets are paying attention. The USD/JPY (U.S. dollar and Japanese yen) pair trades heavily during both the Tokyo session and the New York session, but with different characteristics in each.

Exotic currency pairs — those involving smaller economies like the Norwegian krone or the South African rand — may have very low volume outside their home session. If you trade a pair involving a currency from a specific region, you will usually get better prices and faster execution during that region's trading hours. Spreads (the difference between the buy and sell price) tend to be tighter during high-volume sessions and wider during low-volume sessions.

What happens at the end of the New York session on Friday

The New York session closes at 4 p.m. Eastern Time on Friday, and that is when the forex market shuts down for the week. No major currency trading happens between Friday 4 p.m. and Sunday 5 p.m. Eastern Time. Some brokers may allow you to place orders during this window, but you cannot execute them, and you are exposed to gap risk if you hold a position.

Many traders close all their positions before Friday's close to avoid holding them over the weekend. Others use Friday afternoon to set up positions they want to hold into the following week, knowing that prices may jump when the market reopens Sunday evening. The Friday close is also when many economic reports and central bank decisions are released, because they have maximum impact when the market is about to shut down.

Frequently Asked Questions

Can I trade forex on Saturday or Sunday?

No. The major financial centers are closed on weekends, so there is no institutional trading. Some brokers offer weekend trading on cryptocurrency or synthetic indices, but not on traditional forex pairs. The forex market reopens Sunday at 5 p.m. Eastern Time with the Sydney session.

What time should I trade if I am in a different time zone?

Convert the session times to your local time zone. If you are in Pacific Time, subtract three hours from Eastern Time. If you are in Central European Time, add six hours. Most forex brokers let you set your platform to display times in your local zone, which makes it easier to track when each session opens and closes.

Do forex markets close on holidays?

Yes. The forex market is closed on major U.S. holidays (like Thanksgiving and Christmas), and it may have reduced volume on holidays observed in other countries. On U.S. holidays, the New York session does not open, but the Tokyo and London sessions may still trade. Check your broker's holiday calendar before trading around major holidays.

What is the best time to trade forex?

The London-New York overlap (1 p.m. to 2 p.m. Eastern Time) typically offers the highest volume and tightest spreads. However, the "best" time depends on which currency pair you trade and your own schedule. Pairs involving the yen trade well during Tokyo hours; pairs involving the euro trade well during London hours.

Why do forex prices jump when the market opens on Sunday?

The market cannot trade over the weekend, so prices cannot adjust to news that breaks Saturday or Sunday. When trading resumes Sunday evening, prices jump to reflect all the news that accumulated while the market was closed. This is called a gap, and it is one reason traders avoid holding positions over the weekend.