Forex, also known as foreign exchange or currency trading, is a decentralized global market where traders exchange currencies. Unlike other financial markets that are open only during specific hours of the day, forex is open 24 hours a day, five days a week. Forex trading begins on Sunday evening at 5 pm EST and ends on Friday at 5 pm EST. However, the forex market doesn’t open at the same time in all countries. In this article, we’ll explore in which country forex opens for the week.
The forex market is divided into different trading sessions based on the time zone of major financial centers around the world. The four main trading sessions are the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its own unique characteristics, trading volume, and market participants.
The Sydney session is the first to open on Sunday evening at 5 pm EST. It lasts until 2 am EST and is the least active of all sessions. The Sydney session is followed by the Tokyo session, which begins at 7 pm EST and ends at 4 am EST. The Tokyo session is known for its volatility, as it overlaps with the Sydney session and the European session.
The European session, also known as the London session, is the most active session of all. It starts at 3 am EST and ends at 12 pm EST. The London session accounts for more than 30% of the total forex trading volume and is known for its high liquidity and tight spreads. It overlaps with the Tokyo session for a few hours, creating a volatile trading environment.
The New York session is the last trading session of the day and the most active session in North America. It starts at 8 am EST and ends at 5 pm EST. The New York session accounts for about 20% of the total forex trading volume and is known for its high volatility, especially during the overlap with the London session.
So, in which country does forex open for the week? The answer is Australia. The forex market opens on Sunday evening at 5 pm EST, which is Monday morning in Australia. The Sydney session is the first to open, followed by the Tokyo session, the London session, and the New York session.
It’s important to note that not all currency pairs are equally traded during each session. For example, during the Sydney session, currency pairs that involve the Australian dollar or the New Zealand dollar are more actively traded than other pairs. During the London session, currency pairs that involve the euro or the British pound are more actively traded. And during the New York session, currency pairs that involve the US dollar are more actively traded.
In conclusion, the forex market is open 24 hours a day, five days a week, starting on Sunday evening at 5 pm EST and ending on Friday at 5 pm EST. The first trading session of the week is the Sydney session, which opens on Monday morning in Australia. Each trading session has its own unique characteristics, trading volume, and market participants. Understanding the different trading sessions and their characteristics can help traders make better trading decisions and improve their chances of success in the forex market.
