The forex market opens Sunday evening and closes Friday evening in US time

The forex market runs 24 hours a day, five days a week, but not all at once. It opens Sunday at 5 p.m. Eastern Time when trading begins in Wellington, New Zealand, and closes Friday at 4 p.m. Eastern Time when the New York session ends. Between those times, the market is always open somewhere — it simply moves from one major financial center to the next as the sun rises and sets around the globe.

The reason for this rolling schedule is geography. Forex trades currencies, and currencies are needed wherever people do business. When it is morning in Tokyo, traders there are buying and selling. When Tokyo closes, London opens. When London closes, New York opens. There is no central exchange like the New York Stock Exchange; instead, banks and brokers in each region trade with each other during their local business hours.

If you trade forex, the time zone you live in matters because it determines which sessions you can trade during and how much liquidity — how many buyers and sellers — are active when you trade.

Key Takeaways

  • The forex market opens Sunday at 5 p.m. Eastern Time and closes Friday at 4 p.m. Eastern Time, running continuously across four major sessions.
  • The four sessions are Wellington (Sunday 5 p.m. to Monday 2 a.m. ET), Tokyo (Monday 7 p.m. to Tuesday 4 a.m. ET), London (Tuesday 3 a.m. to noon ET), and New York (Tuesday 8 a.m. to Friday 4 p.m. ET).
  • Liquidity and volatility vary by session; the London and New York overlap (8 a.m. to noon ET) is the busiest and most volatile time to trade.
  • Your local time zone affects which sessions you can realistically trade; a session that opens at 2 a.m. your time may not be practical for most traders.
  • Forex does not trade on weekends or on major holidays like Christmas and New Year's Day, even though the market is closed for only a few days per year.

The four major forex trading sessions and their US times

The forex market divides into four overlapping sessions, each centered on a major financial hub. The Wellington session runs from Sunday 5 p.m. to Monday 2 a.m. Eastern Time. The Tokyo session runs from Monday 7 p.m. to Tuesday 4 a.m. Eastern Time. The London session runs from Tuesday 3 a.m. to noon Eastern Time. The New York session runs from Tuesday 8 a.m. to Friday 4 p.m. Eastern Time.

These times shift one hour forward when daylight saving time ends in the fall and one hour backward when it begins in the spring. If you trade regularly, you will need to adjust your trading schedule twice a year.

The sessions overlap slightly. London and New York overlap from 8 a.m. to noon Eastern Time, and this is when the most trading happens. More traders are active, prices move faster, and the bid-ask spread — the cost of entering and exiting a trade — is tighter. If you are new to forex trading, this overlap window is usually the best time to trade because liquidity is highest.

Which session is busiest and most volatile

The London-New York overlap from 8 a.m. to noon Eastern Time is the busiest and most volatile period. During this four-hour window, traders from two of the world's largest financial centers are active at the same time, which means more money is flowing through the market and prices can swing sharply.

The Tokyo session is the second-busiest, followed by the London session alone, and then the Wellington session, which is the quietest. If you prefer smaller price movements and tighter spreads, you might trade during the quieter sessions. If you want larger moves and more trading opportunities, you will find them during London-New York overlap.

Volatility also depends on what is happening in the news. A major economic announcement from the US Federal Reserve will move prices sharply during the New York session, even if it is normally a slower time. An interest rate decision from the Bank of Japan will move prices during Tokyo hours. Always check the economic calendar before you trade to see if any major announcements are scheduled.

How to convert forex market hours to your time zone

If you live outside the Eastern Time zone, you need to convert these times to your local time. The simplest way is to use a time zone converter online — type in "5 p.m. Eastern Time" and your time zone, and it will show you what time that is where you are.

If you trade regularly, write down the four session times in your local time and post them where you work. For example, if you live in Pacific Time (three hours behind Eastern), the New York session opens at 5 a.m. your time and closes at 1 p.m. If you live in London (five hours ahead of Eastern), the New York session opens at 1 p.m. your time and closes at 9 p.m.

Remember that these times shift when daylight saving time changes. In the US, daylight saving time begins in March and ends in November. Not all countries observe daylight saving time, so if you live outside the US, check whether your country shifts its clocks and when.

When the forex market is closed

The forex market is closed on weekends — Saturday and Sunday — and does not reopen until Sunday evening. It is also closed on major holidays: Christmas Day, New Year's Day, and Good Friday are the most common closures. Some brokers also close on other holidays like Thanksgiving or Easter Monday, depending on where they are based.

If you hold a position when the market closes for the weekend, it will stay open until the market reopens Sunday evening. The price when it reopens may be different from the price when it closed Friday, especially if major news breaks over the weekend. This is called gap risk, and it is one reason many traders close their positions before the weekend.

A few currency pairs trade on weekends through some brokers, but these are not the main forex market — they are alternative platforms with lower liquidity and wider spreads. For most traders, the main market is closed on weekends.

How to plan your trading schedule around market hours

If you work a regular job, you may only be able to trade during certain hours. If you work 9 a.m. to 5 p.m. Eastern Time, you can trade before work (during the London session, which opens at 3 a.m. ET) or after work (during the New York session, which closes at 4 p.m. ET). If you work in Pacific Time, the London-New York overlap happens from 5 a.m. to 9 a.m. your time, which may be before your workday starts.

Some traders use automated systems or set alerts so they can trade while they sleep or work. Others trade only during the busiest sessions when they are most likely to see the price movement they want. There is no single right approach — it depends on your schedule, your risk tolerance, and your trading strategy.

Before you start trading, map out which sessions you can realistically trade during and which pairs are most active during those times. Some currency pairs are more liquid during certain sessions. The euro-dollar pair (EUR/USD), for example, is most active during London and New York hours. The dollar-yen pair (USD/JPY) is most active during Tokyo and New York hours. Knowing this helps you pick the right pair for the time you want to trade.

Frequently Asked Questions

Does the forex market ever close during the week?

No. The forex market is open continuously from Sunday 5 p.m. Eastern Time through Friday 4 p.m. Eastern Time. It closes only on weekends and major holidays. There is always a session open somewhere during the business week.

Can I trade forex at 3 a.m. my time?

Yes, if your broker is open. Most brokers that serve retail traders are open during all four sessions. However, trading at 3 a.m. your time means you are trading during a quieter session with fewer traders active, which usually means wider spreads and less liquidity. It is possible but not ideal for most traders.

What happens to my open trades when the market closes on Friday?

Your trades stay open over the weekend. The market will reopen Sunday evening at the price where it closed Friday, or at a different price if major news broke over the weekend. If you do not want to hold a position over the weekend, you must close it before Friday 4 p.m. Eastern Time.

Does daylight saving time affect forex market hours?

Yes. When the US switches to or from daylight saving time, the forex market hours shift by one hour. The market always opens and closes at the same clock times in Eastern Time, so when Eastern Time changes, the times in your local zone change too. Check your broker's website in March and November to confirm the new times.

Is the London-New York overlap the only good time to trade?

It is the busiest and most liquid time, which works well for many traders. But some traders prefer the quieter Tokyo or Wellington sessions because prices move more slowly and spreads are tighter. The best time to trade depends on your strategy, your risk tolerance, and your schedule.