One of the most attractive things about trading the foreign exchange markets is that it is a market that is open to everyone and can be traded at any time. The Forex Markets run almost around the clock at 23 hours a day and 5 days a week. The one-hour gap of closing between sessions occurs only during a period between where US markets close and the Asian/Oceanic session opens.
When looking up the forex trading hours, one will find that in the early hours of the morning, you will find Sydney and Tokyo open, with London and Europe only opening an hour before Tokyo closes. This first session of the day is often referred to as the Asian session. During this period, there aren’t many trades going through the market.
The lack of volume usually results in lack of movement. Large movements occur when there are high volumes being traded. Therefore, during the overlap of the London and New York markets being open, with these two financial capitals of the world trading, there are large movements. Typically, this also occurs as high impact nations to the foreign exchange markets release their data as well as other news.
However, the markets do exhibit periods where prices are frozen and don’t move at all. Usually this occurs on the weekends. There is also a special time when all markets are closed for holidays. Throughout the year, certain markets will be closed for certain holidays. For example, the United States closes its financial markets for their Independence Day on the 4th of July, whereas other markets remain open.
The only time when all markets are fully closed in unison for holidays will be found on the 25th of December for Christmas Day and 1st of January for New Year’s Day. Leading up to the two holidays markets may close somewhat earlier. On some occasions, markets may remain closed for the day following the major holiday, for instances, Boxing Day.
Therefore, we would like to wish everyone happy holidays and a happy new year. We look forward to seeing you trade with us again in 2021. Happy Trading!