The forex market is the largest and most liquid financial market in the world, with an average daily trading volume of $5.3 trillion. It operates 24 hours a day, five days a week, from Monday to Friday. However, the market’s hours can vary depending on several factors, such as time zones, national holidays, and daylight saving time.
The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each of these sessions operates during specific hours, and the market’s liquidity and trading volume varies throughout the day.
The Sydney session opens at 10:00 PM GMT and closes at 7:00 AM GMT. It is the first session to open and is considered the least volatile of the four. However, it is still an important session as it sets the tone for the rest of the day’s trading.
The Tokyo session opens at 12:00 AM GMT and closes at 9:00 AM GMT. It is the second session to open and is known for its volatility, particularly during the overlap with the Sydney session. This session is also important as it includes the Japanese yen, which is a major currency in the forex market.
The London session opens at 8:00 AM GMT and closes at 5:00 PM GMT. It is the most active session and is considered the heart of the forex market. It has the highest trading volume and liquidity, with most of the world’s largest financial institutions and banks located in London.
The New York session opens at 1:00 PM GMT and closes at 10:00 PM GMT. It is the last session to open and is known for its volatility, particularly during the overlap with the London session. This session is also important as it includes the US dollar, which is the world’s most traded currency.
It is important to note that the forex market does not operate on weekends. However, some brokers may offer trading on weekends, such as on Sundays, with limited liquidity and trading volume.
Additionally, the forex market operates differently during national holidays and daylight saving time. During national holidays, trading may be suspended or limited, particularly in countries where the currency is being traded. During daylight saving time, the trading hours may also shift by an hour, depending on the country.
In conclusion, the forex market operates 24 hours a day, five days a week, from Monday to Friday. It is divided into four major trading sessions, each with its own hours and characteristics. Understanding the market’s hours is crucial for traders to make informed decisions and to take advantage of the market’s liquidity and volatility.