Forex markets are open 24 hours a day, five days a week. However, there are certain times when trading activity is more active, and other times when it slows down. This is due to the fact that the forex market is made up of different trading sessions, each with its own set of market participants and characteristics.
The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. These sessions are based on the time zones of the major financial centers around the world.
The Sydney session starts at 10:00 PM GMT and ends at 7:00 AM GMT. This session is characterized by low trading volume and liquidity, as it is the first session to open in the forex market.
The Tokyo session starts at 11:00 PM GMT and ends at 8:00 AM GMT. This session is the second to open in the forex market, and it is characterized by increased trading activity as Japanese traders start trading. This session also overlaps with the Sydney session, which adds to its liquidity.
The London session starts at 7:00 AM GMT and ends at 4:00 PM GMT. This session is the most active and liquid session in the forex market, as it overlaps with both the Tokyo and New York sessions. The London session is characterized by high trading volume and volatility, as it is the financial center of Europe.
The New York session starts at 12:00 PM GMT and ends at 9:00 PM GMT. This session is the last to open in the forex market, and it is characterized by high trading volume and volatility, as it overlaps with both the London and Tokyo sessions. The New York session is the financial center of the United States, and it is the most active and liquid session in the forex market.
It is important to note that the forex market never closes, as trading activity is continuous 24 hours a day, five days a week. However, there are certain times when trading activity slows down or becomes less liquid, such as during holidays or weekends.
During holidays, certain financial centers may be closed, which can lead to lower trading volume and liquidity in the forex market. For example, during Christmas and New Year holidays, the London and New York sessions may be closed, which can lead to reduced trading activity during those times.
In conclusion, the forex market is open 24 hours a day, five days a week, with different trading sessions based on the time zones of the major financial centers around the world. Each session has its own set of market participants and characteristics, with the London and New York sessions being the most active and liquid. While the forex market never closes, trading activity may slow down or become less liquid during holidays or weekends.
