Forex Trading Hours 2022: Trading on public holidays, wintertime & summertime

Christina Clarke
October 2, 2021
If trading closes in the US, it continues elsewhere. With the choice of the right broker, you can stay active almost at all times despite Forex trading hours.
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Anyone who has ever looked around the stock exchange will have noticed that stock trading is not around the clock. At some point, the stock exchange closes its doors and then it’s time for the traders to sleep. No wonder that investors are increasingly looking to forex trading.

Forex trading already starts on Sunday night and extends into the nightly hours of the next Friday. The reason for this flexibility in terms of time is the system on which forex trading is based. As a result, the traders can trade almost around the clock because the trading systems process the execution of the orders completely automatically.

If trading closes in the US, it continues elsewhere. With the choice of the right broker, you can stay active almost at all times despite Forex trading hours.

Table of Contents

Forex market trading hours and opening times at a glance :
DayForex trading time
Monday12:00 a.m. – 12:00 a.m.
Tuesday12:00 a.m. – 12:00 a.m.
Wednesday12:00 a.m. – 12:00 a.m.
Thursday12:00 a.m. – 12:00 a.m.
Friday0:00 a.m. – 11:00 p.m.
Sunday11:00 p.m. – 12:00 p.m.

The Forex trading hours are Sunday (11:00 PM) through Friday (11:00 PM). Thus, the forex trading hours are one of the longest (only the crypto market is open 24 hours, seven days a week), only Saturday and Sunday there is no forex trading.

However, we have now looked at the Forex trading hours in detail. We were particularly interested in the market trading times in winter and summer. But also closing times, such as at Whitsun, you should look at before entering into Forex trading.

If you roughly consider that you keep an eye on the time zones and that the forex trading hours on weekends do not take place by default, you are already well prepared. At IG Markets, for example, you can also trade over the weekend.

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The forex market as a decentralized trading centre without fixed opening times

The forex market is a decentralized trading platform with worldwide access. So it happens that as soon as the trading platforms close in North America, the next trading opportunities in Europe will open their doors. Thus, Forex trading is actually possible around the clock.

That explains the company’s sales of over five trillion US dollars in 2016 alone. In addition, there is much more flexibility because forex trading does not take place via the classic stock exchanges. Incidentally, the liquidity depends on the opening times.

If you want to use the time difference to trade around the clock, rollover costs can arise for the traders in rare cases.

As a trader, you should keep the different time zones and the time difference in mind to avoid this. In addition, different currencies are, of course, used in different regions.

Forex trading hours: when is forex trading booming?

Now let’s take a look at the basic market trading times. First, forex opening times always start on Sundays at 10 p.m. Central European Time. Then the trade in Australia, i.e. Sydney, starts. Finally, trading in forex assets will stop when trading in the USA, more precisely in New York, comes to an end on Friday at 10 p.m. Central European Time.

In detail, the trading hours look like this: While traders can trade from 10 p.m. to 7 a.m. the next morning in Sydney, trading starts two hours later in Japan, i.e. Tokyo. As a trader, you then have the opportunity to get started in Great Britain, London, followed by the official trading hours in New York until 10 p.m.

This geographical interplay of the time zones results in peak times when many traders are active. To Central European Time, the time between 1 p.m. and 5 p.m. is hectic. This is exactly when the opening times for Europe and the USA coincide.

Forex trading hours on public holidays: Christmas, New Year (Silverster), Pentecost & Easter

There are always some peculiarities when it comes to holidays. Sometimes newcomers to forex trading ask themselves whether there is even an opportunity to trade on Pentecost, Christmas or other holidays actively. Even if there are only a few internationally valid holidays, the national holidays considerably influence trading themselves.

Usually, forex trading takes place through a broker. This broker usually reliably informs its customers if only limited trading takes place on a public holiday. There may be breaks in trading on public holidays.

On more extensive public holidays, which affect several trading venues, liquidity can then be restricted. This lower liquidity is then the reason why the trading opportunities are not fully available.

Major holidays in Forex trading include New Year, December 24th, December 31st, Easter, July 4th in the US, July 14th in France and the Moon Festival in Asia. With this significant data, one can expect less liquidity and correspondingly less intensive trading.

Most trading platforms close on regional holidays or automatically reduce the trading volume.

Forex trading does not come to a complete standstill even on public holidays. However, currency pairs that refer to Asian currencies may not be available at the Asian Mid-Autumn Festival. The market trading times do generally not change for the other trading venues, even if the liquidity of the various trading options is sometimes limited.

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Forex market trading hours in wintertime and summertime

Even if the international trade centres alternate with the opening times and sometimes overlap, there are special winter and summertime features. Because then there are even smaller subtleties concerning the transitions between the opening times of the various international trading centres.

Some countries change their clocks to summer or winter time twice a year. In the USA, for example, this changeover takes place from EST (UTC -5) to EDT (UTC -4). Accordingly, the trading times of the trading venues in this time zone also change by one hour.

Forex trading hours: the summer and wintertime in detail

Here is a brief overview of the largest international forex trading venues:

  • In Asia, there is nothing going on for traders in terms of summer and wintertime. This means that the opening times of the two largest Asian Forex trading venues in Tokyo and Hong Kong / Singapore are constant throughout the year. To the Central European time zone, the trading venues here are open between 00: 00-6: 00 a.m. and 1: 00-9: 00 a.m.
  • In Europe, the changeover from summer to winter (and vice versa) mainly affects Frankfurt and London’s two larger trading centres. In summer, the trading centre in Frankfurt is open from 7:00 a.m. to 3:30 p.m., in winter from 8:00 a.m. to 4:30 p.m. The same times also apply to the trading hours in London.
  • Let us now look across to America to the two most important trading centres in New York and Chicago. In summer the gates are open in Central European time from 1.30 p.m. to 8 p.m. In winter, however, it starts an hour later, so that the opening times are from 2:30 p.m. to 9:00 p.m.
  • Last but not least, the two trading centres in the Pacific, Wellington and Sydney, must be included. Wellington opens from 9:00 p.m. to 3:45 p.m. in summer and 10:00 p.m. to 4.45 p.m. in winter. In Sydney, on the other hand, the opening times are from 11 p.m. to 5 a.m. in summer and from 12 a.m. to 6 a.m. in winter.

This gives us a rough overview of the effects of summer and winter time on opening times and trading times at the largest trading venues for Forex trading. If you know these effects of the time change and the time zones on trading, there should actually not be bottlenecks in trading.

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Use the closing times in the Forex market sensibly:

Even if there are hardly any noteworthy closing times in forex trading, you can still use the little time when the trading venues are closed for yourself. This is especially true for the period of closing times over the weekend. During this time, the traders finally have the space to deal more intensively with forex trading and also with possible mistakes of their own in forex trading.

And even if you can’t get active on Saturday and Sunday, you can still deal with various topics related to Forex trading. This is also a smart move when it comes to increasing returns over the long term.

The trading-free time can be used to acquire new trading strategies. However, it works in very different ways. On the one hand, many trading venues offer a training area in which traders can access information and teaching materials.

Usually, there are e-books, coachings, seminars, webinars and more waiting for traders. This information can be used to take trading to the next level. But it is also possible to deal with your own retail philosophy.

Most of the larger platforms offer traders the opportunity to have the weekly view evaluated. In this way, you can reflect on and improve your trading strategies.

It is certainly not a waste of time to look at the new underlying from time to time. But, in addition, it is worth evaluating which long-term growth opportunities this offer and which currencies would have deserved a place in your portfolio in the future.

With a view to current charts and analyzes, the traders can then work out the procedure in the coming week. Of course, market news and news from politics, business and the financial sector also play an essential role.

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Swap costs, positive rolls, negative rolls

In decentralized Forex trading, you should carefully consider when is the right time to open or close a position. Because trading takes place directly between the market participants, the concept is kept quite open. However, costs can arise from positive or negative swap costs incurred for overnight trading when using leverage.

One point that one should at least roughly know is the negative and positive roles. This means that the interest rate of a currency you want to buy is lower than the interest rate of the target currency. This creates a negative role. But, conversely, there is a positive role. This creates profits that are credited directly to the traders’ accounts.

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Forex trading hours conclusion

We have now dealt in detail with the trading times in Forex trading. Forex trading takes place internationally at different times. This includes the general time difference per se and the time change from summer to winter time or vice versa. Accordingly, as a trader, you always have to keep an eye on where Forex trading is currently going and a break.

Especially on the weekend, there is a more extended break that extends over two full days. This forced break can be used as a forex trader to expand and improve your trading strategies. But also the thorough analysis of your trading strategy is an important point to become even more successful in the next week.

Because Forex trading is almost always possible, there are some pitfalls that you should be aware of from time to time. As a trader, you shouldn’t be put under pressure by the different currency pairs and time zones.

It is much better to decide with a cool head and calculation which trades make sense in time and money. The time zones, time differences and the related costs of currency exchange belong to the basic knowledge of every trader.

The great advantage of decentralized forex trading is that you almost always have the opportunity to become active as a trader. When the trading day in Europe comes to an end, things really get going in the USA.

Some brokers may incur costs for holding a position overnight. A look at the trading times of brokers and stock exchanges helps to avoid unnecessary costs.

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FAQs

The exchanges are open 24 hours on weekdays. However, this is not the case on Saturday and Sunday.

Preferably via CFDs with an online broker. You can also speculate on cryptocurrencies on weekends.

In overnight trading, additional costs can arise from positive or negative swaps, for example.

Here on Securedbrokers, we have summarized some guides on the topic of forex. You can find more articles in the menu under forex.

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