The foreign exchange market, or forex market, is a global decentralized marketplace where traders can buy and sell currencies. It is the largest and most liquid financial market in the world, with an average daily trading volume of over $5 trillion.
The forex market is open 24 hours a day, five days a week, from Sunday evening to Friday afternoon (EST). This means that traders from around the world can participate in the market at any time, regardless of their location.
The market is split into three major trading sessions: the Asian session, the European session, and the North American session. Each session has its unique characteristics, and traders should be aware of them to make informed trading decisions.
The Asian session starts at 7:00 PM EST on Sunday and ends at 4:00 AM EST on Monday. This session is characterized by lower volatility and trading volumes compared to the other two sessions. The major currencies traded during this session are the Japanese yen, Australian dollar, and New Zealand dollar.
The European session starts at 3:00 AM EST and ends at 12:00 PM EST. This session is the most active and is characterized by high volatility and trading volumes. The major currencies traded during this session are the euro, British pound, and Swiss franc.
The North American session starts at 8:00 AM EST and ends at 5:00 PM EST. This session is characterized by moderate volatility and trading volumes. The major currencies traded during this session are the US dollar and Canadian dollar.
It is worth noting that there is a significant overlap between the European and North American sessions, which creates a period of high trading activity and volatility. This overlap occurs between 8:00 AM EST and 12:00 PM EST.
Apart from the three major trading sessions, there are also minor trading sessions which traders can take advantage of. These sessions include the Sydney session, which overlaps with the Asian session, and the Tokyo session, which overlaps with the European session.
Traders can access the forex market through various channels, including brokers, banks, and electronic trading platforms. Each channel has its advantages and disadvantages, and traders should choose the one that suits their needs.
In conclusion, the forex market is open 24 hours a day, five days a week, and is split into three major trading sessions. Traders should be aware of the characteristics of each session to make informed trading decisions. The market can be accessed through various channels, and traders should choose the one that suits their needs.
