Forex Market Trading Hours | BR Trading
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Forex Market Trading Hours

As mentioned in previous lessons, one of the key features of the forex market is that it operates on an OTC (Over The Counter) system, meaning it functions 24 hours a day, five days a week, without interruption, from Monday to Friday. The market is closed on weekends (Saturday and Sunday) as part of the weekend break.

The trading day is divided into different periods known as market sessions. The trading day begins with the Australian session in Sydney, which runs from 10:00 PM to 7:00 AM GMT. This session overlaps with the Asian session in Tokyo, which runs from 2:00 AM to 9:00 AM GMT. Following this, the European session in London begins, which is considered the most liquid and active session in the forex market, lasting from 8:00 AM to 5:00 PM GMT. Finally, the US session begins at 1:00 PM and ends at 10:00 PM GMT, marking the second-highest liquidity period in the market.

After the US session ends, trading resumes in the Australian session, starting a new day. The overlap between the European and US sessions, from 1:00 PM to 4:00 PM GMT, is considered the most liquid time in the market.

There is no fixed trading session for the forex market, unlike stock markets where trading sessions have set start and end times. In the forex market, traders can execute trades throughout the day without the need to adhere to a specific session. The only time the market is closed is during the weekend (Saturday and Sunday).

This continuous trading cycle is possible due to the rolling nature of forex trading across different global financial centers. The trading day begins in New Zealand, followed by Australia (Sydney), Japan (Tokyo) representing the Asian session, followed by Hong Kong and Singapore. After a few hours, trading begins in the Middle East (Bahrain), then Europe (London), which is one of the largest financial hubs in the world, and finally, the United States (New York), where the day ends and begins anew in London.

The forex market has no geographical limits, and trading is not tied to a specific location. The market operates through electronic communication networks (ECN) using the OTC system, which allows traders to access the market, view prices, and execute trades from anywhere in the world using a trading platform or software.

Stay tuned for the next lesson to learn more about the forex market!