The foreign exchange market, commonly known as forex or FX, is the largest financial market in the world. It is a decentralized market where currencies are traded 24 hours a day, five days a week, across different time zones. The forex market is highly liquid, with a daily trading volume of trillions of dollars. But what is the average trading per day on forex?
According to the Bank for International Settlements (BIS), the forex market’s daily trading volume was $6.6 trillion in April 2019. This represents a 29% increase from the previous survey in 2016, which reported a daily trading volume of $5.1 trillion. The increase in trading volume can be attributed to the growth in electronic trading, as well as the increased participation of retail traders.
The forex market is open 24 hours a day, five days a week, except for weekends and public holidays. Trading starts on Sunday at 5 pm EST when the Sydney session opens, and ends on Friday at 5 pm EST when the New York session closes. During this time, traders can buy and sell currencies around the clock. The forex market is divided into three major trading sessions: the Asian session, the European session, and the US session.
The Asian session starts with the opening of the Tokyo market at 7 pm EST and ends with the close of the Sydney market at 4 am EST. The European session starts with the opening of the London market at 3 am EST and ends with the close of the Frankfurt market at 12 pm EST. The US session starts with the opening of the New York market at 8 am EST and ends with the close of the Chicago market at 5 pm EST.
During each trading session, the forex market experiences different levels of activity, depending on the trading volume of the currencies involved. For example, the Asian session is generally less volatile than the European or US session, as it involves the currencies of countries with smaller economies. On the other hand, the European and US sessions are more volatile, as they involve the currencies of major economies such as the US dollar, the euro, and the British pound.
The average trading per day on forex varies depending on the trading session, the currency pairs traded, and the market conditions. However, it is estimated that the forex market trades an average of $5.3 trillion per day, with 90% of the trading volume coming from the major currency pairs. These include the US dollar (USD), the euro (EUR), the Japanese yen (JPY), the British pound (GBP), the Swiss franc (CHF), the Canadian dollar (CAD), the Australian dollar (AUD), and the New Zealand dollar (NZD).
The most traded currency pair is the EUR/USD, which accounts for 24% of the daily trading volume. The next most traded currency pairs are USD/JPY (13%), GBP/USD (9%), and AUD/USD (5%). Other popular currency pairs include EUR/JPY, USD/CHF, and USD/CAD.
The forex market is highly liquid, which means that traders can easily buy and sell currencies at any time without affecting the market price. This is because the forex market is made up of a network of banks, financial institutions, and individual traders who are constantly buying and selling currencies. The high liquidity of the forex market makes it an attractive market for traders who want to enter and exit positions quickly.
In conclusion, the average trading per day on forex is estimated to be around $5.3 trillion, with 90% of the trading volume coming from the major currency pairs. The forex market is open 24 hours a day, five days a week, and is divided into three major trading sessions: the Asian session, the European session, and the US session. The forex market is highly liquid, which makes it attractive to traders who want to enter and exit positions quickly.
