The foreign exchange market, also known as forex, is a decentralized market that operates 24 hours a day, five days a week. However, this does not mean that forex trading is available every hour of the day. There are specific trading hours that traders need to be aware of, and this includes the time when the market opens on Sunday.
What is forex trading?
Forex trading is the act of buying or selling currencies with the aim of making a profit. It is the largest financial market in the world with a daily trading volume of over $5 trillion. Forex trading is done through a network of banks, brokers, and other financial institutions who are connected electronically.
What time does the forex market open on Sunday?
The forex market opens on Sunday at 5:00 pm EST (Eastern Standard Time) and closes on Friday at 5:00 pm EST. However, it is important to note that trading hours vary depending on the currency pair being traded, and the time zone of the country where the trader is located.
For example, if a trader is located in the United States, they will need to adjust their trading hours to match the EST time zone. This means that if the trader wants to trade the EUR/USD pair, they will need to be aware that the market opens at 5:00 pm EST on Sunday and closes at 5:00 pm EST on Friday.
On the other hand, if a trader is located in Asia, they will need to adjust their trading hours to match the GMT+8 time zone. This means that if the trader wants to trade the USD/JPY pair, they will need to be aware that the market opens at 9:00 pm GMT+8 on Sunday and closes at 9:00 pm GMT+8 on Friday.
Why does the forex market close on weekends?
The forex market closes on weekends to give traders a break from the stress of trading. It also allows financial institutions and banks to reconcile their accounts and prepare for the upcoming trading week.
During the weekends, traders can still access their trading accounts, monitor their open positions, and place pending orders. However, they cannot execute trades since the market is closed.
What are the best times to trade forex?
The best times to trade forex are during the overlapping hours of the major trading sessions. This is when the market is most active, and there is a higher chance of making a profit.
The major trading sessions are the Asian, European, and American sessions. The Asian session starts at 7:00 pm EST and ends at 4:00 am EST, the European session starts at 3:00 am EST and ends at 12:00 pm EST, and the American session starts at 8:00 am EST and ends at 5:00 pm EST.
During the overlapping hours of these sessions, there is a high volume of trades being executed, which means that there is a higher chance of finding profitable trades. These overlapping hours are from 8:00 am EST to 11:00 am EST, and from 1:00 pm EST to 4:00 pm EST.
Conclusion
In conclusion, the forex market is a 24-hour market that operates five days a week. The market opens on Sunday at 5:00 pm EST and closes on Friday at 5:00 pm EST. Traders need to be aware of the trading hours in their time zone, and the best times to trade forex are during the overlapping hours of the major trading sessions.
