Forex trading is a global market that operates 24 hours a day, five days a week. The market opens on Sunday at 5:00 pm EST and closes on Friday at 5:00 pm EST. Forex traders can take advantage of the different time zones to trade in multiple markets around the world.
The forex market is decentralized, which means that it is not located in one specific place like the stock market. Instead, it is a network of banks, institutions, and traders who buy and sell currencies electronically. This allows traders to participate in the market from anywhere in the world.
Forex trading starts on Sunday at 5:00 pm EST because the market opens in Sydney, Australia. Sydney is the first major financial center to open, followed by Tokyo, Hong Kong, Singapore, and then London and New York. The market follows the sun, with trading moving from east to west around the world.
The Sydney market opens at 5:00 pm EST on Sunday, which is 7:00 am in Sydney. The market then closes at 2:00 am EST on Monday, which is 4:00 pm in Sydney. Tokyo then opens at 7:00 pm EST on Sunday, followed by Hong Kong at 8:00 pm EST, and Singapore at 9:00 pm EST. London then opens at 3:00 am EST on Monday, and New York at 8:00 am EST.
Forex traders can take advantage of the different time zones to trade in multiple markets around the world. For example, a trader in New York can trade the Sydney market in the evening, the Tokyo market in the early morning, the London market in the mid-morning, and the New York market in the afternoon. This allows traders to take advantage of market volatility and opportunities around the clock.
Forex trading on Sunday can be quiet because there are fewer traders participating. However, there can still be volatility and opportunities for traders. The market can move based on news events and economic data releases, even if there are fewer traders participating. Traders should be aware of the potential for low liquidity and wider spreads on Sunday.
In conclusion, forex trading starts on Sunday at 5:00 pm EST because the market opens in Sydney, Australia. The market then moves around the world, following the sun, with trading in multiple markets around the clock. Forex traders can take advantage of the different time zones to trade around the clock, but should be aware of the potential for low liquidity and wider spreads on Sunday.
