Forex, or foreign exchange market, is a decentralized market where currencies are traded globally. It is the largest financial market in the world, with a daily trading volume of over $5 trillion. The forex market is open 24 hours a day, five days a week, which means that it is always open for trading. However, there are certain times when the market is more active than others, and traders need to be aware of these times to maximize their profits.
The forex market opens on Sunday at 5 p.m. EST (Eastern Standard Time) and closes on Friday at 5 p.m. EST. This means that the market is open for trading for 24 hours a day, five days a week. However, it is important to note that not all currency pairs are active during all trading sessions. The market is divided into three major trading sessions: the Asian session, the European session, and the North American session.
The Asian session starts at 5 p.m. EST on Sunday and ends at 4 a.m. EST on Monday. This session is characterized by low volatility and low trading volume. The major currency pairs that are active during this session are the AUD/USD, NZD/USD, and USD/JPY. Traders who prefer to trade during this session are those who like to trade the news and those who prefer to trade during the quiet periods.
The European session starts at 2 a.m. EST and ends at 11 a.m. EST. This session is the most active trading session, and it is characterized by high volatility and high trading volume. The major currency pairs that are active during this session are the EUR/USD, GBP/USD, and USD/CHF. Traders who prefer to trade during this session are those who like to trade the major currency pairs and those who like to trade during the high volatility periods.
The North American session starts at 8 a.m. EST and ends at 5 p.m. EST. This session is also characterized by high volatility and high trading volume. The major currency pairs that are active during this session are the USD/CAD, USD/MXN, and USD/JPY. Traders who prefer to trade during this session are those who like to trade the major currency pairs and those who like to trade during the high volatility periods.
It is important to note that the forex market is not open on weekends, which means that traders cannot trade on Saturdays and Sundays. However, there are still some trading opportunities during the weekend. One example is the gap trading strategy, which involves trading the price gaps that occur over the weekend. This strategy is used by traders who like to trade the news and those who prefer to trade during the quiet periods.
In conclusion, the forex market opens on Sunday at 5 p.m. EST and closes on Friday at 5 p.m. EST. Traders need to be aware of the different trading sessions and the currency pairs that are active during each session to maximize their profits. It is also important to note that the market is not open on weekends, but there are still some trading opportunities during the weekend.
