Forex markets are the most liquid and active financial markets 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, and the trading sessions follow the sun around the world. During different trading sessions, different financial centers are active, which means that some forex markets are open while others are closed. Therefore, it’s important to know the trading hours of the major forex markets if you want to be an active trader.
Here is a breakdown of the forex markets that are currently open:
1. Sydney session (Asian session): This session opens at 9:00 PM GMT and closes at 6:00 AM GMT. The Sydney session is the first to open and is considered the least volatile. However, it’s still an important session, as it sets the tone for the rest of the day. During this session, the major currency pairs that are traded include AUD/USD, NZD/USD, and USD/JPY.
2. Tokyo session (Asian session): This session opens at 11:00 PM GMT and closes at 8:00 AM GMT. The Tokyo session is the second to open and is considered the most liquid session in the Asian market. During this session, the major currency pairs that are traded include USD/JPY, EUR/JPY, and GBP/JPY.
3. London session (European session): This session opens at 7:00 AM GMT and closes at 4:00 PM GMT. The London session is the most active session and is considered the center of the forex market. During this session, the major currency pairs that are traded include EUR/USD, GBP/USD, and USD/CHF.
4. New York session (American session): This session opens at 12:00 PM GMT and closes at 9:00 PM GMT. The New York session is the last to open and is considered the most volatile session. During this session, the major currency pairs that are traded include EUR/USD, GBP/USD, and USD/CAD.
During the overlap of two trading sessions, there is a higher volume of trading and increased volatility. For example, the overlap between the London and New York sessions, which occurs from 12:00 PM GMT to 4:00 PM GMT, is the most active period in the forex market. During this time, traders can take advantage of the increased liquidity and volatility to make profitable trades.
It’s also important to note that different countries have different daylight saving times, which can affect the trading hours of the forex market. For example, when the United States switches to daylight saving time, the New York session opens an hour earlier, at 11:00 AM GMT. Therefore, it’s important to check the current trading hours of the forex market before making any trades.
In conclusion, the forex market is open 24 hours a day, five days a week, and the trading sessions follow the sun around the world. The major trading sessions include the Sydney session, Tokyo session, London session, and New York session. During the overlap of two trading sessions, there is a higher volume of trading and increased volatility. Therefore, it’s important to know the trading hours of the major forex markets if you want to be an active trader.
