Foreign exchange markets, also known as forex or FX, are open 24 hours a day, five days a week. The forex market is the largest financial market in the world, with an average daily trading volume of over $5 trillion.
The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each of these sessions has its unique characteristics and trading opportunities.
The Pacific Session (Sydney Session)
The Pacific Session, also known as the Sydney Session, starts at 2:00 pm PST and closes at 11:00 pm PST. This session is the least active of the four trading sessions, as the major financial centers of the world are closed during this time.
The Sydney session is characterized by low volatility and low liquidity. As a result, traders tend to focus on trading the Australian dollar, the New Zealand dollar, and the Japanese yen.
The Asian Session (Tokyo Session)
The Asian Session, also known as the Tokyo Session, starts at 4:00 pm PST and closes at 1:00 am PST. This session is the second most active of the four trading sessions.
The Tokyo session is characterized by high volatility and high liquidity. As a result, traders tend to focus on trading the Japanese yen, the Australian dollar, and the New Zealand dollar.
The European Session (London Session)
The European Session, also known as the London Session, starts at 12:00 am PST and closes at 9:00 am PST. This session is the most active of the four trading sessions.
The London session is characterized by high volatility and high liquidity. As a result, traders tend to focus on trading the euro, the British pound, and the Swiss franc.
The American Session (New York Session)
The American Session, also known as the New York Session, starts at 5:00 am PST and closes at 2:00 pm PST. This session is the third most active of the four trading sessions.
The New York session is characterized by high volatility and high liquidity. As a result, traders tend to focus on trading the US dollar, the Canadian dollar, and the Mexican peso.
Conclusion
In conclusion, forex markets are open 24 hours a day, five days a week, and are divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each of these sessions has its unique characteristics and trading opportunities. Traders should be aware of the trading hours and market conditions of each session to make informed trading decisions.
