Forex Market Hours Explained: Why the Forex Market Opens and Closes When It Does

When beginners first get into forex trading, the most popular question is: “When is the forex market open?”

Unlike the stock market, the forex market doesn’t sleep. But that doesn’t mean it’s active 24/7 with the same intensity. Understanding forex market trading hours can help traders pick the right time to trade - and avoid the hours when the market slows down.

So, let’s break down what forex market hours really are, how they work across global sessions, and why they’re structured the way they are.

Forex Market Hours Explained

The forex market is open 24 hours a day, 5 days a week - starting from Monday morning in Asia (Sunday evening GMT) and closing Friday evening in New York.

This 24-hour window is possible because forex trading is decentralized and runs through a network of global financial centers rather than one central exchange.

The market follows a cycle of four major trading sessions. These timeas are considered as the "best time to trade forex in GMT time":

Why Is the Forex Market Open 24 Hours?

Some of the most active trading periods happen during overlaps - when two sessions are open at the same time.

• London/New York Overlap (1:00 PM – 5:00 PM GMT): This is the busiest time of day for forex trading. It combines the strength of the US and European markets - often resulting in high volatility and great trading opportunities.
• Tokyo/London Overlap (8:00 AM – 9:00 AM GMT): This overlap is short but can lead to early movement, especially for JPY or EUR pairs.

Best Time to Trade Forex Based on Session

The best time to trade forex based on session overlap:

• EUR/USD or GBP/USD: London and New York sessions (high liquidity and volume)
• AUD/USD or NZD/USD: Sydney and Tokyo sessions (local activity)
• USD/JPY: Tokyo session (especially during Asian economic news releases)

Why Understanding Market Hours Matters

Many beginners make the mistake of trading during slow sessions, like late in the New York evening or before Sydney opens. During these hours, spreads can widen, movement can slow down, and false signals are more likely. Knowing when the market is most active:

• Helps traders catch real trends
• Improves technical analysis accuracy
• Reduces unnecessary fees due to wider spreads

FAQs About Forex Market Hours

Is forex trading open on weekends? No. The market closes on Friday evening (New York time) and reopens on Sunday evening. Some brokers offer weekend crypto trading, but not forex.

What happens when the market opens on Monday? Price gaps can appear - especially after news released over the weekend. Always check the economic calendar before trading the Monday open.

Final Thoughts

Understanding forex market hours and session overlaps is one of the most valuable things a new trader can learn. Trading during the right hours can improve performance, reduce risk, and make each trade more meaningful. If you're serious about improving your results, don’t just learn when to enter a trade - learn when the market is alive.