Forex, also known as foreign exchange, is a decentralized market where currencies from different countries are traded. As it’s a global market, it operates 24 hours a day, five days a week. However, not all Forex markets are open at the same time. The market is divided into four main sessions: the Sydney session, the Tokyo session, the London session, and the New York session.
The Sydney session starts at 10 pm GMT and ends at 7 am GMT. This session is the quietest of all the sessions, as the market is just opening, and most traders are still asleep. However, it’s still an important session, as it sets the tone for the day. During this session, the Australian dollar (AUD), the New Zealand dollar (NZD), and the Japanese yen (JPY) are the most actively traded currencies.
The Tokyo session starts at 12 am GMT and ends at 9 am GMT. This session is known for its volatility, as it overlaps with the Sydney session and the London session. This is the time when traders in Asia and Australia are actively trading, and it’s also the time when economic data from Japan is released. During this session, the Japanese yen (JPY) is the most actively traded currency, followed by the Australian dollar (AUD) and the New Zealand dollar (NZD).
The London session starts at 8 am GMT and ends at 5 pm GMT. This session is the most important session, as it’s the largest financial center in the world. During this session, the European currencies, such as the euro (EUR), the British pound (GBP), and the Swiss franc (CHF), are the most actively traded currencies. This session also overlaps with the Tokyo session, which makes it a high volatile session.
The New York session starts at 1 pm GMT and ends at 10 pm GMT. This session is the last session of the day and is known for its high volatility. During this session, the US dollar (USD) is the most actively traded currency. This session also overlaps with the London session, which makes it a time when most of the major economic data is released.
It’s important to note that during weekends, the Forex market is closed, and there is no trading activity. However, some brokers offer trading during the weekend, but with limited liquidity and wider spreads.
In conclusion, the Forex market is open 24 hours a day, five days a week, but not all markets are open at the same time. The market is divided into four main sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its own characteristics, and it’s important to understand them to make informed trading decisions.
