The forex market, also known as the foreign exchange market, is a decentralized financial market where currencies are traded 24 hours a day, five days a week. It is the largest and most liquid financial market in the world, with an average daily trading volume of over $5 trillion. As the forex market operates across different time zones, it is important to know the time when it opens and closes in different regions.
The forex market opens on Sunday at 5 pm EST (Eastern Standard Time) and closes on Friday at 5 pm EST. However, it is important to note that the market does not operate continuously during this time. The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session.
The Sydney session is the first major trading session and it opens at 5 pm EST on Sunday. It is typically a quiet session with low volatility as the market is just starting to open after the weekend. The Sydney session is also the smallest trading session in terms of volume, as it only accounts for around 4% of the total daily trading volume.
The Tokyo session follows the Sydney session and it opens at 7 pm EST. This session is also known as the Asian session and it is the second largest trading session in terms of volume, accounting for around 19% of the total daily trading volume. The Tokyo session is known for its high volatility, especially when important economic data is released from Japan or other Asian countries.
The London session is the third major trading session and it opens at 3 am EST. This session is also known as the European session and it is the largest trading session in terms of volume, accounting for around 38% of the total daily trading volume. The London session is known for its high volatility, as it overlaps with the Tokyo session for a few hours, creating a period of high trading activity.
The New York session is the last major trading session and it opens at 8 am EST. This session is also known as the North American session and it accounts for around 17% of the total daily trading volume. The New York session is known for its high volatility, especially when important economic data is released from the United States.
It is important to note that the forex market operates across different time zones, which means that the opening and closing times of each session may vary depending on your location. For example, if you are located in Australia, the Sydney session may not start at 5 pm EST, but rather at a different time based on your time zone.
In conclusion, the forex market opens on Sunday at 5 pm EST and closes on Friday at 5 pm EST. However, the market is not open continuously during this time and 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 own characteristics in terms of volume and volatility, and it is important to know the opening and closing times of each session based on your location.
