The Forex market is the largest financial market in the world, with a daily trading volume of over $5 trillion. It is a decentralized market, meaning it is not controlled by a single entity or institution. Instead, it is made up of a network of financial institutions, traders, and investors who trade currencies 24 hours a day, five days a week.
The Forex market starts at 5 pm EST on Sunday and runs until 5 pm EST on Friday. This means that the market is open for trading 24 hours a day, except for weekends. The reason for the long trading hours is that the Forex market is a global market, and there are different time zones around the world.
The Forex market is divided into four major trading sessions: the Asian session, the European session, the North American session, and the Pacific session. Each session has its own unique characteristics and trading opportunities.
The Asian session starts at 5 pm EST on Sunday and ends at 2 am EST on Monday. This session is characterized by low volatility and low trading volume, as most of the major financial centers in the world are closed. However, it can provide traders with opportunities to trade the Japanese yen and other Asian currencies.
The European session starts at 2 am EST and ends at 11 am EST. This session is the most active and liquid session of the day, as it overlaps with both the Asian and North American sessions. It is characterized by high volatility and trading volume, as most of the major financial centers in Europe are open.
The North American session starts at 8 am EST and ends at 5 pm EST. This session is also characterized by high volatility and trading volume, as it overlaps with the European session. The US dollar is the most heavily traded currency during this session, as the US economy is the largest in the world.
The Pacific session starts at 9 pm EST and ends at 6 am EST. This session is the least active and liquid session of the day, as most major financial centers in the Pacific region are closed. However, it can provide traders with opportunities to trade the Australian dollar, New Zealand dollar, and other currencies in the region.
It is important to note that although the Forex market is open 24 hours a day, not all currency pairs are equally active throughout the day. Some currency pairs are more active during certain sessions than others. For example, the EUR/USD pair is most active during the European and North American sessions, while the AUD/USD pair is most active during the Pacific session.
In conclusion, the Forex market starts at 5 pm EST on Sunday and runs until 5 pm EST on Friday. It is a global market that is open 24 hours a day, five days a week. The market is divided into four major trading sessions, each with its own unique characteristics and trading opportunities. Traders should be aware of the different sessions and the currency pairs that are most active during each session to maximize their trading opportunities.
