Forex Market Hours: Can You Trade 7 Days a Week?

What Are Forex Market Hours?

Forex market hours are the specified periods when traders and investors can conduct transactions in the foreign exchange market. The forex market is open five and a half days a week due to an overlap in hours but local exchanges are closed on the weekends.

These international currency markets are vital to facilitating business across the globe. They're made up of banks, commercial companies, central banks, investment management firms, and hedge funds as well as retail forex brokers and investors.

Understanding Forex Market Hours

Forex market hours are the hours during which forex market participants all around the world can buy, sell, exchange, and speculate on global currencies. The forex market is open 24 hours a day on weekdays but it closes geographically on weekends.

This market operates in multiple time zones so it can be accessed at any time except for the weekend break. This break gets squeezed with time zone changes.

The forex market opens on Sundays at 5 p.m. local time in New York City. It closes on Fridays at 5 p.m. and resumes trading again 48 hours later to begin a new week. Traders all over the world can execute trades in the forex market when the market is open. Trading conditions can vary depending on the session in which you're operating.

Specific Sessions and High-Volume Hours

Forex market trading hours are based on when trading is open in each participating country. Periods overlap but it's generally accepted that certain periods are the most active for each region: 

• New York: 8 a.m. to 5 p.m. (EST)
• Tokyo: 7 p.m. to 4 a.m. (EST)
• Sydney: 3 p.m. to 12 a.m. (EST)
• London: 3 a.m. to 11 a.m. (EST)

This chart shows the actual hours that markets are open in each region in the global standard UTC time and where those sessions overlap.

The two busiest time zones are in London and New York. The period when the London afternoon and the New York morning trading sessions overlap is the busiest. It accounts for about 50% of the volume traded in the day with trillions of dollars in value changing hands.

The WM/Reuters benchmark spot and forward foreign exchange rates are determined during this period. The rates are set at 4 p.m. London local time and are used for daily valuation and pricing by many money managers and pension funds.

Most Popular Currencies

The forex market is a 24-hour market but some currencies in several emerging markets aren't traded 24 hours a day. 

The seven most traded currencies in the world are the U.S. dollar, euro, Japanese yen, British pound, Australian dollar, Canadian dollar, and Swiss franc. All trade continuously while the forex market is open. Speculators from all over the world typically trade forex in currency pairs involving these seven currencies and favor trading times with heavier volumes.

High Volume and Pricing Efficiency

Forex brokers will provide tighter spreads with bid and ask prices that are closer to each other when trading volumes are heaviest. This improves pricing efficiency and reduces transaction costs for traders.

Institutional traders also favor times with higher trading volume but they may accept wider spreads for the opportunity to trade as early as possible in reaction to new information they have.

The forex market remains an efficient transfer mechanism for all participants despite its highly decentralized nature. It's a far-reaching access mechanism for those who want to speculate from anywhere on the globe.

The Bottom Line

The forex market is open during certain hours spanning sessions in participating countries. These market hours allow for 24-hour trading five and a half days a week when taken together. Forex markets in each geographical region are closed during the weekend but traders can still trade during their region's weekend times on other exchanges.