The forex market, also known as the foreign exchange market, is the largest financial market in the world. It operates 24 hours a day, 5 days a week, and has a turnover of almost $6 trillion per day. With so much activity, it is important for traders to know when the forex market opens and closes in order to make informed trading decisions.
The forex market is open 24 hours a day, 5 days a week, because it operates in different time zones around the world. The market opens on Sunday at 5:00 PM EST (10:00 PM GMT) and closes on Friday at 5:00 PM EST (10:00 PM GMT). This means that traders can trade forex at any time during the week, except on weekends.
The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. The Sydney session starts at 5:00 PM EST (10:00 PM GMT) and ends at 2:00 AM EST (7:00 AM GMT). The Tokyo session starts at 7:00 PM EST (12:00 AM GMT) and ends at 4:00 AM EST (9:00 AM GMT). The London session starts at 3:00 AM EST (8:00 AM GMT) and ends at 12:00 PM EST (5:00 PM GMT). The New York session starts at 8:00 AM EST (1:00 PM GMT) and ends at 5:00 PM EST (10:00 PM GMT).
Each trading session has its own characteristics and trading opportunities. The Sydney session is usually quiet and has low volatility because it overlaps with the end of the New York session and the beginning of the Tokyo session. The Tokyo session is known for its volatility and large price movements, especially during the overlap with the London session. The London session is considered the most important session because it is the center of the forex market and has the highest trading volume. The New York session is also important because it overlaps with the London session and has high liquidity.
Traders need to be aware of the trading hours of each session in order to take advantage of the trading opportunities. For example, if a trader wants to trade the USD/JPY pair, he/she should focus on the Tokyo session because it is the most active session for that pair. Similarly, if a trader wants to trade the EUR/USD pair, he/she should focus on the London and New York sessions because they have the highest trading volume for that pair.
It is important to note that the forex market does not close completely during weekends. While trading is not possible during weekends, the market continues to operate because of the activities of central banks, governments, and other financial institutions. These activities can have an impact on the forex market when it reopens on Monday.
In conclusion, the forex market is open 24 hours a day, 5 days a week, and traders need to be aware of the opening and closing times of each session in order to make informed trading decisions. The Sydney, Tokyo, London, and New York sessions have different characteristics and trading opportunities, and traders should focus on the sessions that are most active for the currency pairs they want to trade. While trading is not possible during weekends, the forex market continues to operate because of the activities of central banks, governments, and other financial institutions.
