Forex, also known as Foreign Exchange Market, is the largest financial market in the world, with an average daily trading volume of over $5 trillion. It operates 24 hours a day, 5 days a week, and is open to traders all over the world. However, the forex market is not open all day, every day, and there are specific hours when the market is most active. In this article, we will explain how long the forex market is open.
The forex market is open 24 hours a day, five days a week, from Sunday at 5 pm EST until Friday at 5 pm EST. This allows traders from all over the world to participate in the market at their convenience. The market is closed on weekends, which means that trading is not possible during this time.
However, just because the forex market is open 24 hours a day, does not mean that it is always active. There are specific hours when the market is most active, and these are the times when traders can expect to see the most volatility and liquidity in the market.
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 has its unique characteristics, and traders should be aware of these when planning their trading strategies.
The Sydney session is the first session of the trading day, and it opens at 5 pm EST on Sunday. This session is relatively quiet, and there is not much volatility in the market. The major currency pairs that are traded during this session are the AUD/USD and the NZD/USD.
The Tokyo session is the second session of the trading day, and it opens at 7 pm EST on Sunday. This session is known for its volatility, and it is the busiest session of the Asian trading session. The major currency pairs that are traded during this session are the USD/JPY, the EUR/JPY, and the AUD/JPY.
The London session is the third session of the trading day, and it opens at 3 am EST. This session is the busiest session of the day, and it is known for its high liquidity and volatility. The major currency pairs that are traded during this session are the EUR/USD, the GBP/USD, and the USD/CHF.
The New York session is the last session of the trading day, and it opens at 8 am EST. This session is known for its high liquidity, and it is the busiest session of the day. The major currency pairs that are traded during this session are the USD/JPY, the EUR/USD, and the GBP/USD.
It is important to note that the forex market is not always active during these sessions. There are times when the market is quiet, and there is not much volatility or liquidity. For example, the hours between the end of the New York session and the start of the Sydney session are relatively quiet, and there is not much trading activity during this time.
In conclusion, the forex market is open 24 hours a day, five days a week, from Sunday at 5 pm EST until Friday at 5 pm EST. However, the market is not always active, and traders should be aware of the specific trading sessions and their characteristics when planning their trading strategies. The Sydney, Tokyo, London, and New York sessions all have their unique characteristics, and traders should be mindful of these when planning their trades.
