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How long is the forex market open?

The forex market, also known as the foreign exchange market, is open 24 hours a day, five days a week. However, this does not mean that all forex trading sessions are created equal. Understanding the different forex trading sessions is crucial to making informed trading decisions.

The forex market operates on a global scale, with different financial centers opening and closing at different times. The main financial centers that drive forex trading are located in Tokyo, London, and New York. These financial centers are responsible for the majority of forex trading volume.

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The forex market opens on Sunday at 5 pm EST (10 pm GMT) when the Sydney session begins. The Sydney session lasts until 2 am EST (7 am GMT) and accounts for only 4% of the total forex trading volume. Despite the low trading volume, the Sydney session is important because it sets the tone for the rest of the trading day.

The Tokyo session begins at 7 pm EST (12 am GMT) and lasts until 4 am EST (9 am GMT). The Tokyo session accounts for 21% of the total forex trading volume. The Tokyo session is known for its volatility, with the Japanese yen being one of the most traded currency pairs during this session.

The London session begins at 3 am EST (8 am GMT) and lasts until 12 pm EST (5 pm GMT). The London session accounts for 35% of the total forex trading volume. The London session is known for its high liquidity and volatility, with the euro and the pound being the most traded currency pairs during this session.

The New York session begins at 8 am EST (1 pm GMT) and lasts until 5 pm EST (10 pm GMT). The New York session accounts for 17% of the total forex trading volume. The New York session is known for its high liquidity and volatility, with the US dollar being the most traded currency during this session.

After the New York session closes, the forex market enters a period of low volatility known as the Asian session. The Asian session lasts from 7 pm EST (12 am GMT) to 3 am EST (8 am GMT). During this time, the trading volume is low, and the market is relatively calm.

It is important to note that the forex market is not open on weekends. The market closes on Friday at 5 pm EST (10 pm GMT) and reopens on Sunday at 5 pm EST (10 pm GMT). This period of downtime is known as the weekend gap and can lead to significant price movements when the market reopens on Sunday.

In summary, the forex market is open 24 hours a day, five days a week, with different financial centers opening and closing at different times. Understanding the different forex trading sessions is crucial to making informed trading decisions. Each session has its own characteristics, with the London and New York sessions being the most volatile and liquid. The Asian session is known for its low volatility and trading volume. Lastly, the forex market is closed on weekends, which can lead to significant price movements when the market reopens on Sunday.

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