The forex market closes on Friday at 5:00 PM Eastern Time. This marks the end of the New York session. Depending on where you live, this time may be earlier or later. After this, the market stays closed until Sunday evening.
How the Forex Market Works
The forex market is open 24 hours a day, five days a week. It runs through a huge network of banks and financial centers. There is no one single place where forex trading happens. Instead, it moves across four major trading sessions.
Sydney session
This session starts first. It opens on Sunday at 5:00 PM ET. It includes traders from Australia and nearby areas.
Tokyo session
This session opens around 7:00 PM ET. It brings in trading activity from Japan and the rest of Asia.
London session
London starts at 3:00 AM ET. This is one of the busiest sessions because many large banks and investors are based in Europe.
New York session
This session begins at 8:00 AM ET and closes at 5:00 PM ET. It is the last session of the day and the week.
Because these sessions overlap, the market stays open 24 hours until the end of the New York session on Friday.
Why the Friday Close Is Important
As Friday comes to an end, the market starts to slow down. This time is important for several reasons.
1. Less activity
By the time it is afternoon in New York, many traders in Asia and Europe have already stopped for the week. This means fewer trades are happening. That makes prices move in strange ways. It may also be harder to buy or sell without extra costs.
2. Weekend gaps
Even though trading stops, news still happens during the weekend. For example, if a country makes a new rule or if a big company makes an announcement, the market may react when it reopens. This can cause a price gap from Friday’s close to Sunday’s open.
3. Extra fees
Some brokers charge a rollover or swap fee when a trade is left open overnight. On Fridays, these fees can be higher because they also cover the weekend. Traders should check their broker’s fee policy.
4. Bigger risks
Because of gaps and low activity, holding trades over the weekend can be risky. If the market moves too much when it reopens, it may skip over your stop-loss. That means your trade could close at a worse price than you planned.
How to Plan Before the Market Closes
Good traders always prepare before Friday’s close. And here is exactly how you can do it too:
Close trades early
Many traders choose to close their trades on Friday morning or early afternoon. This helps avoid weekend risk.
Use stop-loss orders
If you want to keep your trade open, set a stop-loss. This tool helps limit how much you can lose if the price moves too far.
Check the news
It is smart to look at news that may affect the market over the weekend. This includes elections, meetings, or major economic reports.
Trade with care
The last few hours on Friday are often slow. Many traders avoid opening new trades during this time because the market is not moving much.
Time Zones and the Closing Hour
The closing time is always 5:00 PM ET, but that looks different around the world.
- In New York, it is 5:00 PM Friday
- In London, it is 10:00 PM Friday
- In Dubai, it is 1:00 AM Saturday
- In Tokyo, it is 6:00 AM Saturday
So, when someone asks, “What time does the forex market close on Friday?”, the answer is always the same in ET but different by local time.
What Happens Over the Weekend?
The forex market is actually closed from Friday 5:00 PM until Sunday 5:00 PM. Eastern Time, of course. That is when the Sydney session starts again. During this break, no trades can be placed. But you can still look at your charts and plan for next week.
Some traders use the weekend to:
- Review their past trades
- Plan new strategies
- Read news and reports
- Practice on demo accounts
This quiet time is good for learning and getting better.
What to Avoid on Fridays
It is tempting to keep trading until the very end, but that can be a mistake. On Friday:
- Spreads often get wider
- There are fewer people trading
- Orders may not fill at the price you want
This can make trading harder and more costly. Many experienced traders stop trading by Friday afternoon to stay safe.
Conclusion
The forex market closes every Friday at 5 PM ET when the New York session ends. This is the same for all traders around the world, even if the local time is different. After the close, the market takes a break until Sunday evening. Planning well before the weekend helps you avoid surprises and protect your trades.
A good broker like Defcofx makes this even easier. With fast support, no hidden fees, and high leverage up to 1:2000, Defcofx gives traders more power and peace of mind. Plus, their 40% welcome bonus and quick weekend withdrawals are great for new and seasoned traders alike.
FAQ
1. Why does the forex market close on Friday?
It closes when the New York session ends. That’s the end of the trading week for everyone.
2. Can I trade forex on Saturday?
No, the market is closed on Saturday. It reopens Sunday at 5 PM ET.
3. What happens if I leave trades open over the weekend?
You may face a price gap. The market can open at a different price than it closed.
4. Do all brokers close at the same time?
Most brokers follow the 5 PM ET close. But it’s best to check with your own broker.
5. Is Friday a good day to trade forex?
It can be in the morning. But later in the day, the market slows down. Many traders stop early to avoid risks.
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