Forex, also known as foreign exchange, is the largest financial market in the world. It allows individuals, businesses, and governments to exchange currencies and engage in international trade. As a global market, forex is open 24 hours a day, five days a week. However, the opening and closing times of the forex market vary depending on the region and the time zone. In this article, we will discuss in detail what time forex opens and closes.
Forex trading takes place in different time zones, which means that the market is open for trading 24 hours a day from Monday to Friday. The forex market is divided into four major trading sessions: the Asian session, the European session, the North American session, and the Pacific session. Each session has its own unique characteristics and trading hours.
The Asian session starts at 9:00 PM GMT (2:00 PM EST) and ends at 6:00 AM GMT (11:00 PM EST). This session is known for its low volatility and low liquidity. The major forex trading centers in the Asian session are Tokyo, Hong Kong, and Singapore.
The European session starts at 7:00 AM GMT (2:00 AM EST) and ends at 4:00 PM GMT (11:00 AM EST). This session is the most active and volatile session, as it overlaps with the Asian and North American sessions. The major forex trading centers in the European session are London, Frankfurt, and Paris.
The North American session starts at 12:00 PM GMT (7:00 AM EST) and ends at 9:00 PM GMT (4:00 PM EST). This session overlaps with the European session, which makes it the second most active and volatile session. The major forex trading centers in the North American session are New York, Chicago, and Toronto.
The Pacific session starts at 9:00 PM GMT (4:00 PM EST) and ends at 6:00 AM GMT (1:00 AM EST). This session is the least active and volatile session, as it overlaps with the Asian session. The major forex trading centers in the Pacific session are Sydney and Wellington.
It is important to note that the above trading hours are subject to change, depending on various factors such as holidays, daylight saving time, and unexpected events such as natural disasters and political changes. Therefore, it is advisable to check the trading hours regularly to avoid any confusion and to plan your trades accordingly.
In addition to the above trading sessions, there is also a weekend gap in the forex market. The forex market closes on Friday at 9:00 PM GMT (4:00 PM EST) and opens on Sunday at 9:00 PM GMT (4:00 PM EST). This gap can cause significant price movements when the market reopens on Sunday, as traders react to any news or events that occurred over the weekend.
To conclude, the forex market is open 24 hours a day, five days a week. The trading hours vary depending on the region and the time zone. The Asian session is the least active and volatile session, while the European and North American sessions are the most active and volatile. The Pacific session is the least active and overlaps with the Asian session. Traders should regularly check the trading hours to avoid any confusion and plan their trades accordingly.