Forex trading is a global phenomenon, with traders from around the world participating in the market 24 hours a day. This is made possible by the fact that the forex market is decentralized, with no central exchange or trading floor. Instead, trading takes place electronically, with traders using a variety of platforms and brokers to buy and sell currencies.
So, how long do forex sessions last? The short answer is that there are no set trading hours for the forex market. However, there are certain times when the market is more active and certain currency pairs are more likely to be traded.
The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session is named after the major financial center in the region and has its own unique characteristics.
The Sydney session is the first to open, starting at 10:00 PM GMT on Sunday and lasting until 7:00 AM GMT on Monday. This session is generally considered to be the quietest of the four, with lower trading volumes and less volatility.
The Tokyo session follows the Sydney session and starts at 12:00 AM GMT and lasts until 9:00 AM GMT. This session is also known as the Asian session and is characterized by higher volatility than the Sydney session, particularly when the Japanese yen is involved.
The London session is the busiest of the four and starts at 8:00 AM GMT and lasts until 5:00 PM GMT. This session is known for its high trading volumes and volatility, particularly when it overlaps with the New York session.
Finally, the New York session starts at 1:00 PM GMT and lasts until 10:00 PM GMT. This session is also known for its high trading volumes and volatility, particularly when it overlaps with the London session.
It’s important to note that these sessions are not set in stone and can vary depending on daylight saving time and other factors. Additionally, there is some overlap between the sessions, with the London and New York sessions overlapping for four hours between 1:00 PM GMT and 5:00 PM GMT.
Despite the fact that the forex market is open 24 hours a day, not all currency pairs are equally active at all times of the day. For example, the EUR/USD pair is typically more active during the London and New York sessions, while the AUD/USD pair is more active during the Sydney and Tokyo sessions.
It’s also worth noting that there are certain times of the year when the forex market is more active than others. For example, the end of the year is typically a slower time for the market, with many traders taking time off for the holidays.
In conclusion, the forex market is open 24 hours a day, but trading activity varies depending on the time of day and the currency pair being traded. The four major trading sessions – Sydney, Tokyo, London, and New York – each have their own unique characteristics and are more or less active depending on the time of day. As a forex trader, it’s important to be aware of these factors and adjust your trading strategy accordingly.