Forex or Foreign Exchange is a decentralized market that operates 24 hours a day, 5 days a week. It is the largest financial market in the world, with a daily trading volume of over $5 trillion. This market is open for trading from Monday to Friday, and it covers all time zones, from New York to Tokyo.
Forex market hours vary depending on the time zone you are in. The market opens on Sunday at 5 pm EST, which is Monday morning in Asia, and closes on Friday at 5 pm EST, which is Saturday morning in Asia. This means that the forex market is open for 24 hours a day, 5 days a week, from 5 pm EST on Sunday to 5 pm EST on Friday.
Forex trading sessions
Forex trading is divided into three major trading sessions: the Asian session, the European session, and the US session. Each session has its own specific characteristics and trading hours.
1. Asian session: The Asian session starts at 6 pm EST and ends at 3 am EST. This session is characterized by low volatility and low trading volume. The major markets that open during the Asian session are Tokyo, Sydney, and Singapore.
2. European session: The European session starts at 3 am EST and ends at 12 pm EST. This session is characterized by high volatility and high trading volume. The major markets that open during the European session are London, Frankfurt, and Paris.
3. US session: The US session starts at 8 am EST and ends at 5 pm EST. This session is characterized by high volatility and high trading volume. The major markets that open during the US session are New York and Chicago.
Overlap sessions
There are two overlap sessions during the day when two major trading sessions are open at the same time. These overlap sessions are characterized by high trading volume and high volatility.
1. Asian/European overlap: This overlap session occurs between 3 am EST and 4 am EST when the European session is about to close, and the Asian session is about to open.
2. European/US overlap: This overlap session occurs between 8 am EST and 12 pm EST when the European session is in full swing, and the US session is about to open.
Weekend gap
Since the forex market is open 24 hours a day, 5 days a week, there is often a gap between the closing price on Friday and the opening price on Sunday. This is known as the weekend gap, and it can be caused by news events or market developments that occur over the weekend.
Conclusion
In conclusion, the forex market is open 24 hours a day, 5 days a week, from 5 pm EST on Sunday to 5 pm EST on Friday. The market is divided into three major trading sessions: the Asian session, the European session, and the US session. Each session has its own specific characteristics and trading hours. The market is also characterized by two overlap sessions, which are characterized by high trading volume and high volatility. Finally, traders should be aware of the weekend gap, which can occur between the closing price on Friday and the opening price on Sunday.
