Forex, short for foreign exchange, is a decentralized, global market where currencies are traded 24 hours a day, five days a week. The market is open from Sunday night to Friday night, giving traders ample opportunity to buy and sell currencies in various forex markets around the world.
The forex market is open 24 hours a day, but it is important to note that it is not always active. There are certain times when the market is more active than others, and this is usually when two or more forex markets overlap. These periods of high activity are called trading sessions, and they are divided into four main sessions: the Sydney, Tokyo, London, and New York sessions.
The Sydney session starts at 10:00 PM GMT on Sunday and ends at 7:00 AM GMT on Monday. This session is usually quiet, as there are not many major economic releases during this time.
The Tokyo session starts at 12:00 AM GMT and ends at 9:00 AM GMT. This session is known for its volatility, as it overlaps with the Sydney session and usually sees a lot of trading activity.
The London session starts at 8:00 AM GMT and ends at 5:00 PM GMT. This session is the most active, as it overlaps with both the Tokyo and New York sessions. During this time, traders can expect high levels of volatility and liquidity.
The New York session starts at 1:00 PM GMT and ends at 10:00 PM GMT. This session is also highly active, as it overlaps with the London session. During this time, traders can expect high levels of volatility and liquidity.
While the forex market is open 24 hours a day, five days a week, it is important to note that not all forex markets are open during each trading session. For example, the Sydney session only includes the Australian and New Zealand markets, while the Tokyo session includes the Japanese market. The London session includes the European markets, while the New York session includes the American markets.
In addition to the four main trading sessions, there are also other important events that can affect the forex market. These include major economic releases, such as the Non-Farm Payrolls report, which is released on the first Friday of every month.
Overall, the forex market is open 24 hours a day, five days a week. However, not all forex markets are open during each trading session, which can affect trading activity and volatility. Traders should be aware of the different trading sessions and the events that can affect the market in order to make informed trading decisions.