Forex Trading in 2025: Can You Trade Currency When Its Main Market Is Closed? | Updated Costs and Insights

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In the dynamic realm of forex trading, global currencies can be bought and sold continuously throughout the day. Thanks to remarkable liquidity and technological progress, the forex market attracts countless traders worldwide, increasing trade volumes exponentially.

Essential Insights

• Forex operates 24 hours daily on weekdays, allowing traders to initiate currency trades at nearly any hour.
• This continuous operation is due to the transition of trading activity across major financial hubs like London, New York, Sydney, and Tokyo as the day progresses.
• Retail traders are typically active from Monday to Friday, with no official weekend trading available.
• Many day traders prefer closing positions before overnight holds to avoid overnight risks.

Continuous Forex Trading Across Global Markets

Although certain national markets close, forex trading persists globally due to participating banks and financial institutions that maintain currency liquidity. For example, while North American exchanges operate during Japanese market closures, traders can still access Japanese yen via brokerage platforms. However, liquidity is highest when the currency’s home market is open.

Typical primary trading hours by key financial centers are:

• New York: 8 a.m. to 5 p.m. ET
• Tokyo: 7 p.m. to 4 a.m. ET
• Sydney: 3 p.m. to 12 a.m. ET
• London: 3 a.m. to 11 a.m. ET

Risks of Trading When Main Currency Markets Are Closed

Many experts advise caution when trading currencies outside their primary market hours due to heightened volatility. Market closing times often trigger position liquidations, causing erratic price movements, while market openings may prompt traders to swiftly enter or exit positions to avoid weekend exposure.

Holding positions over weekends can be risky unless your trading strategy is designed for long-term holds spanning weeks or months.

Weekend Forex Trading Realities

The U.S. forex market officially closes Friday at 5 p.m. EST and reopens Sunday at 5 p.m. ET. Despite retail market closures, central banks and certain institutions conduct limited weekend trading, resulting in occasional price gaps between Friday’s close and Sunday’s open.

To mitigate gap risks, traders often close positions before weekends or use stop-loss and take-profit orders.

Important Warning

In politically or economically unstable regions, situations such as bank failures can occur over weekends, causing significant price discrepancies by market reopening.

Special Considerations for Less-Traded Currencies

Some currencies have limited demand and liquidity, making them harder to trade and often available only through select banks. Because forex lacks centralized exchanges, there’s no guarantee of matching trade orders.

In contrast, major currencies like the US dollar (USD), euro (EUR), and Japanese yen (JPY) remain highly liquid and accessible.

When to Avoid Forex Trading

For optimal trading outcomes, it’s wise to avoid forex trading during high-risk periods such as Fridays and Mondays to prevent gap exposure, during bank holidays, and around major economic news releases.

Is Weekend Forex Trading Possible?

The forex market is closed on weekends for retail traders, reopening Sunday at 5 p.m. ET, so trades must wait until then.

Holding Forex Positions Overnight: Pros and Cons

Deciding how long to hold a forex position depends on your trading goals. Overnight holds can expose you to gap risks but also capitalize on market volatility. Assess the potential rewards against the risks before deciding.

Summary

Thanks to global time zones, forex markets operate 24 hours a day during weekdays, enabling near-continuous trading even when a currency’s primary market is closed. However, retail trading pauses on weekends, and understanding market hours, risks, and strategic timing is crucial for success in the forex market in 2024.

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