The forex market is a decentralized market that operates 24 hours a day, five days a week. This means that traders can participate in the market at any time, from anywhere in the world. However, there are certain times of the day when the market is more active and volatile, which can provide traders with better trading opportunities. In this article, we will explain what time each session starts in the forex market and what traders can expect during each session.
The forex market is divided into three main trading sessions: the Asian, European, and North American sessions. Each session has its own unique characteristics and trading opportunities. The Asian session is the first session to open, followed by the European session and then the North American session.
The Asian session starts at 4:00 PM EST (9:00 PM GMT) and ends at 1:00 AM EST (6:00 AM GMT). This session is also known as the Tokyo session, as it is dominated by the Japanese yen. During this session, the market is generally less volatile, as most of the major financial centers are closed. However, there can still be some good trading opportunities, especially for traders who specialize in trading the yen crosses. The Asian session also overlaps with the end of the Australian trading session, which can create some volatility in the AUD and NZD pairs.
The European session starts at 2:00 AM EST (7:00 AM GMT) and ends at 11:00 AM EST (4:00 PM GMT). This session is also known as the London session, as it is dominated by the British pound. The European session is the most active session of the day, as it overlaps with the Asian and North American sessions. During this session, traders can expect high volatility and liquidity, especially in the EUR, GBP, and CHF pairs. The European session is also when most of the economic news releases are announced, which can create significant price movements in the market.
The North American session starts at 8:00 AM EST (1:00 PM GMT) and ends at 5:00 PM EST (10:00 PM GMT). This session is also known as the New York session, as it is dominated by the US dollar. The North American session is the second most active session of the day, as it overlaps with the European session. During this session, traders can expect high volatility and liquidity, especially in the USD, CAD, and MXN pairs. The North American session is also when most of the economic news releases from the US are announced, which can create significant price movements in the market.
It is important to note that the forex market is a 24-hour market, which means that there is always some activity in the market, even when the major financial centers are closed. Traders who prefer to trade during quieter times can take advantage of the Asian session, while those who prefer more volatility can focus on the European and North American sessions.
In conclusion, the forex market is a 24-hour market that operates in three main trading sessions: the Asian, European, and North American sessions. Each session has its own unique characteristics and trading opportunities. Traders who want to take advantage of the market’s volatility and liquidity should focus on the European and North American sessions, while those who prefer quieter times can take advantage of the Asian session. Regardless of which session a trader chooses to trade in, it is important to keep an eye on the economic news releases, as they can create significant price movements in the market.
