Forex Education

Forex Basics – Introduction Market Hours & Liquidity

1.8 Market Hours & Liquidity

Forex Basics – Introduction

The forex market operates 24 hours a day, five days a week, starting Monday in Asia and closing Friday in New York.

Liquidity refers to how easily a trade can be executed without significantly affecting the price. High liquidity generally results in:

  • Faster order execution
  • Lower spreads
  • Reduced slippage

Liquidity is typically highest during:

  • Major session overlaps
  • Periods of strong economic activity

Lower liquidity may occur during holidays or outside major trading hours.