Understanding what “market open” means in forex helps you know when prices begin to move, why liquidity changes during the day, and how exchanges of information and orders shape the price you see. Because the foreign exchange market is global and decentralised, the phrase can refer to several related ideas: the daily opening of regional trading sessions, the opening price shown on a chart or candle, and the state of an order or position being “open.” This article walks through those meanings, how they affect trading, and practical points to keep in mind.
The forex market opens around the clock — but only during weekdays
Unlike a single exchange such as a stock market, forex is an over-the-counter market made up of banks, brokers, hedge funds, companies and retail traders around the world. That structure means trading moves from one time zone to the next rather than shutting down each day. In practice, the market is open 24 hours a day during the business week: it begins with the Asia-Pacific session on Monday (local time) and finishes with North America on Friday.
Because activity follows the sun, there is always at least one major trading centre open during the week. That continuous cycle is convenient — you can trade at very different hours depending on where you live — but it also means liquidity, volatility and spreads change through the day.
Trading sessions and why their openings matter
When people talk about the market “opening” in forex they often mean the start of one of the major regional sessions. Each session reflects the local working hours of banks and financial institutions in that region; when a session opens, participants start quoting and executing trades and liquidity generally increases.
The four commonly referenced sessions are:
- Sydney (Asia‑Pacific)
- Tokyo (Asia)
- London (Europe)
- New York (North America)
Each session has its own character. For example, the Tokyo session tends to show more movement in yen pairs and some Asia-Pacific crosses, while London brings broad activity across EUR, GBP and other European-linked pairs. New York often triggers big moves in US dollar pairs and amplifies volatility when it overlaps with London.
Because many trading strategies rely on liquidity and volatility, traders pay attention to session openings and especially to times when sessions overlap — for instance when London and New York are both active. Overlaps typically produce tighter spreads and larger, faster price moves, which some traders use for short-term setups while others avoid them because of the higher pace.
The chart “open” price and session opens
The word “open” is also used on charts to indicate the first traded price of a time period. A one-hour candle’s open is the price at the beginning of that hour; a daily candle’s open is the first price after the market returns from its daily break. Chart opens are the reference points used in many technical approaches — for example, opening-range breakouts, where the high/low of the first X minutes or hours is used to set entries.
A concrete example: if the EUR/USD closed on Friday at 1.1000 and your broker’s servers record the new trading week beginning Sunday evening at 1.1050, the daily candle for Sunday (or Monday depending on your platform) will show an open at 1.1050. That weekend jump is called a gap and it happens because liquidity was thin or non-existent while important news changed fundamentals.
“Market open” versus an “open position” or “open order”
In trading language, “open” can mean different things depending on context. An open order is a pending instruction you have placed with your broker (for instance a limit order that hasn’t been executed yet). An open position is a trade you have entered and not yet closed — that is your active exposure to the market.
For example, if you place a buy order for GBP/USD at market during the London session and it executes, you now have an open position. If you place a limit buy order below the current price that hasn’t been filled, that’s an open order. Both of these states are managed differently: open orders can be altered or cancelled, while open positions require active risk management (stop losses, take-profits, size adjustments).
Gaps, holidays and weekend openings
Because forex trading is mostly closed over the weekend for many brokers, the first price when markets reopen after the break can differ from the Friday close. Gaps occur when new information arrives while the market was closed — for example a political event, central-bank surprise, or a major economic shock. Gaps can be an opportunity for some strategies but also increase execution risk because slippage and wider spreads are common at those moments.
Holidays in individual countries can reduce liquidity for specific currencies. A public holiday in Japan might make yen crosses quieter; a U.S. holiday can thin liquidity for USD pairs. Brokers sometimes alter trading hours around holidays and major events, so knowing the calendar matters.
Daylight saving time, broker servers and clock differences
Because each country sets its daylight saving schedule, the precise UTC or local times for session openings shift during the year. In addition, brokers run servers on a particular timezone (their “server time”) and may quote opening and closing times relative to that clock. That means the “market open” you see in your platform depends partly on your broker’s server settings.
A practical step is to confirm your broker’s server time and how they display session opens on your charts. Many traders convert major session windows to their local time so they know when liquidity and typical volatility patterns will appear in their time zone.
How traders use market opens in practice
Traders use session opens and the opening price on charts in several ways. Day traders often watch the first hour after a major session opens (the “opening range”) to detect momentum. Breakouts from that range can be traded with defined stops and targets. Swing traders may look at the daily open and weekly open for bias, using higher-timeframe opens as context for longer-term positions. Market opens also matter when planning news-event trades: some traders avoid initiating new positions right before major releases, others use the release window but with smaller size and wider stops.
A simple example: a scalper might wait for the London session to open, watch the first 30-minute range, and place a stop-entry trade if price breaks that early range with clear momentum. A position trader might ignore intraday noise and set entries based on daily opens and trend context.
Practical tips for handling market opens
When you plan trades around market opens, a few practical habits reduce surprises. Know your broker’s server time and how that maps to local session times. Check the economic calendar for scheduled releases that coincide with session openings. Use limit orders where you want a specific fill price and be prepared for slippage during thin or fast markets. Size positions conservatively around session openings and overlaps, because volatility can increase quickly. Finally, test any session-based strategy on a demo account so you understand how it behaves under live conditions.
Risks and caveats
Trading around market opens brings both opportunity and risk. Overlaps and openings can produce larger moves and tighter spreads, but they also increase the chance of slippage, rapid reversals and gapped prices after weekends or major news. Broker execution, differing server times, and temporary illiquidity for certain currency pairs can change how an “open” behaves in reality compared with a textbook description. Always use appropriate position sizing and risk controls. This article does not provide personalised financial advice — trading carries risk and you can lose money. Consider practising on a demo account and consult a licensed adviser if you need personal guidance.
Key Takeaways
- The forex market is effectively open 24 hours during the business week because trading moves across global sessions; session openings change liquidity and volatility.
- “Market open” can mean the regional session starting, the opening price on a chart, or the state of an order/position being open — context matters.
- Session overlaps (for example London–New York) often offer higher liquidity and volatility, which some traders use and others avoid.
- Always account for broker server time, daylight saving shifts, and economic events; trading carries risk and this is not personalised advice.
References
- https://tradenation.com/articles/what-time-does-forex-market-open/
- https://www.myfxbook.com/market-hours
- https://dailypriceaction.com/tools/forex-market-hours/
- https://www.axi.com/int/blog/education/forex/forex-market-hours
- https://www.avatrade.com/education/trading-for-beginners/forex-trading-sessions
- https://www.investopedia.com/ask/answers/how-forex-market-trade-24-hours-day/
- https://www.quora.com/What-is-the-open-and-close-for-Forex
- https://www.ig.com/en/glossary-trading-terms/open-definition