The foreign exchange market, also known as the forex market, is the largest and most liquid market in the world. It operates 24 hours a day, five days a week, except for weekends and holidays. This means that trading in the forex market is continuous, with different trading sessions overlapping each other.
The forex market is open 24 hours a day because it is a global market that operates across different time zones. The market opens on Sunday at 5 pm EST (10 pm GMT) and closes on Friday at 5 pm EST (10 pm GMT). This means that the forex market is open for 24 hours a day, 5 days a week, or 120 hours a week.
However, even though the forex market is open 24 hours a day, not all trading hours are equal. The market is most active during the overlap of the Asian, European, and US trading sessions. During this time, there is a higher volume of trading, which means that prices are more volatile and there are more opportunities for traders.
The Asian trading session starts at 7 pm EST (12 am GMT) and closes at 4 am EST (9 am GMT). It is the least volatile trading session, with lower trading volume and fewer price movements. The European trading session starts at 3 am EST (8 am GMT) and closes at 12 pm EST (5 pm GMT). It is the most volatile trading session, with higher trading volume and more price movements. The US trading session starts at 8 am EST (1 pm GMT) and closes at 5 pm EST (10 pm GMT). It is the second most volatile trading session, with high trading volume and significant price movements.
It is essential to note that even though the forex market is open 24 hours a day, not all currencies are tradable during all trading sessions. Some currencies are more active during specific trading sessions, depending on the country’s economic activity and the time zone. For example, the Japanese yen is more active during the Asian trading session, while the euro is more active during the European trading session.
In conclusion, the forex market is open 24 hours a day, five days a week, except for weekends and holidays. The market operates across different time zones, which means that trading sessions overlap. The most active trading sessions are during the overlap of the Asian, European, and US trading sessions, with different currencies more active during specific trading sessions. It is essential for traders to understand the different trading sessions’ characteristics to make informed trading decisions and take advantage of the opportunities the forex market offers.
