The forex market, also known as the foreign exchange market, is a decentralized market where currencies are traded globally. As the forex market operates on a 24-hour basis, traders from across the world can participate in trading at any time of the day. However, there are specific hours when the forex market is most active, and trading volume is at its highest.
The forex market is open five days a week, from Monday to Friday. The market opens on Sunday at 5 pm EST when the Sydney session begins, and it closes on Friday at 5 pm EST after the New York session ends. This means that the forex market is open for 24 hours a day, five days a week, with the exception of weekends.
The market 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 distinct trading hours, and the market is most active when two or more sessions overlap.
The Sydney Session starts at 5 pm EST on Sunday and lasts for eight hours until 2 am EST. During this time, the Australian and New Zealand markets are open, making this session the least volatile of all the trading sessions. The Tokyo Session starts at 7 pm EST and lasts for eight hours until 4 am EST. During this session, the Japanese market is the most active, and there is an overlap with the Sydney session for two hours.
The London Session is the most active of all the trading sessions and starts at 3 am EST and lasts for eight hours until 12 pm EST. During this session, the European market is open, and there is an overlap with the Tokyo session for two hours. As London is the financial capital of Europe, this session sees the highest trading volume, making it the most volatile session.
The New York Session starts at 8 am EST and lasts for eight hours until 5 pm EST. During this session, the North American market is open, and there is an overlap with the London session for four hours, making this session the second most active.
It is essential to note that the forex market is not open on weekends, which means that trading is closed on Saturdays and Sundays. However, there are some exceptions to this rule as the forex market remains open during some holidays. For example, the market remains open during the Christmas and New Year holidays, but trading volume is usually low during this time.
In conclusion, the forex market is open five days a week, from Monday to Friday, and operates on a 24-hour basis. The market is divided into four major trading sessions, each with its distinct trading hours, and the market is most active when two or more sessions overlap. It is crucial for traders to understand the trading hours of each session and the market’s opening and closing times to make informed trading decisions.
