The Forex Market closes on Friday in Nigeria by 11 PM which represents the end of the New York session.
Remember that the online forex market operates according to a 3-session system, starting with the Asian session, continuing to the London session and ending with the New York session.
What is a Forex Session?
Forex sessions represent those periods when Big Banks, Hedge Funds & Oil Companies are open for business (these are the major sources of liquidity because they Buy/Sell a lot of FX. Oil companies have FX because they sell oil which is paid for in majorly USD ).
Because the Big Banks are open during their respective sessions, you get better pricing and lower spread. If one bank gives a high exchange rate, your broker will simply check what the next bank is offering then search for the bank with the lowest exchange rate. By doing this, your broker is able to offer you lower spreads.
However, after the sessions are over you will still be able to trade these currency pairs (that is during week days only) but since the Big Banks would have closed for the day, your broker will assume the role of providing liquidity and this is called Market Making.
When your broker is the one providing liquidity, you will tend to see higher spreads and this is common when you are trading forex during the wrong session.
When trading during the wrong session with your broker as the major source of liquidity, you also tend to see prices changing slowly & smaller candles forming on your chart.
It is always advisable to trade during the correct session so you get low spreads and bigger candlestick formation.
