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What time does forex follow?

Forex, also known as foreign exchange or currency trading, is a decentralized global market where people trade currencies. It operates 24 hours a day, five days a week, with trading hours varying depending on the location of the market. As a result, it is essential to understand what time forex follows to make informed trading decisions.

Forex trading begins on Sunday at 5:00 p.m. EST and ends on Friday at 5:00 p.m. EST. It is worth noting that the market does not operate during weekends, which is why the forex trading week begins on Sunday. However, it is important to keep in mind that the trading hours can differ depending on the location of the market.

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One of the most important things to consider when trading forex is the opening and closing times of the different trading sessions. The forex market is divided into four major trading sessions, which are the Asian session, the European session, the North American session, and the Pacific session.

The Asian session opens at 6:00 p.m. EST on Sunday and ends at 4:00 a.m. EST on Monday. The Asian session is significant because it includes the Tokyo market, which is one of the largest forex markets globally. The Tokyo market is known for its liquidity and volatility, making it an attractive option for traders.

The European session starts at 2:00 a.m. EST and ends at 11:00 a.m. EST. The European session is when the London market opens, and it is considered the most volatile trading session. The London market is the largest forex market globally, accounting for more than 30% of the total forex trading volume.

The North American session starts at 8:00 a.m. EST and ends at 5:00 p.m. EST. It is during this session that the New York market opens, which is the second-largest forex market globally. The North American session is known for its liquidity, and it is the most active session, accounting for more than 50% of the total forex trading volume.

The Pacific session starts at 5:00 p.m. EST and ends at 2:00 a.m. EST. The Pacific session is also known as the Sydney session, and it is the smallest forex market globally. However, it is essential to note that some of the major currency pairs, such as the AUD/USD, NZD/USD, and USD/JPY, are traded during this session.

It is crucial to consider the opening and closing times of the different trading sessions when trading forex because the volatility and liquidity of the market vary depending on the session. For example, during the European session, the market is more volatile, which means there is a higher chance of making profits, but there is also a higher risk of losses.

It is also essential to understand that the time forex follows can be affected by different factors, such as economic news releases, geopolitical events, and market sentiment. Economic news releases, such as interest rate decisions, GDP data, and employment reports, can have a significant impact on the market and cause price movements.

Geopolitical events, such as elections, wars, and natural disasters, can also affect the forex market. For example, the Brexit referendum in 2016 caused significant price movements in the GBP/USD pair. Market sentiment, which refers to the overall attitude of traders towards the market, can also affect the forex market. If traders are optimistic about the market, it can lead to a bullish sentiment, which can cause prices to rise.

In conclusion, forex trading operates 24 hours a day, five days a week, with trading hours varying depending on the location of the market. The market is divided into four major trading sessions, which are the Asian session, the European session, the North American session, and the Pacific session. It is crucial to consider the opening and closing times of the different trading sessions when trading forex because the volatility and liquidity of the market vary depending on the session. Additionally, economic news releases, geopolitical events, and market sentiment can affect the time forex follows. Understanding what time forex follows is essential for making informed trading decisions and maximizing profits.

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