Forex trading is a globally decentralized market that operates 24 hours a day, five days a week. This means that traders can trade currencies at any time of the day or night, from anywhere in the world. However, while the market is open 24 hours a day, different regions have specific trading hours. In this article, we will discuss the Asian forex market and what time it closes.
The Asian forex market, also known as the Tokyo session, accounts for around 21% of the total forex market turnover. It is the third largest trading session after the European and the American sessions. The Asian session starts at 11 pm GMT on Sunday and closes at 8 am GMT on Friday.
The Asian session is dominated by Japan, China, Australia, and New Zealand. These countries are major players in the global economy and have a significant impact on the forex market. The Japanese yen is the third most traded currency in the world, after the US dollar and the euro. Therefore, any news or events that affect these countries’ economies can have a significant impact on the forex market.
The Asian session is characterized by lower volatility compared to the European and American sessions. This is because the major economic news releases and events happen during the European and the American sessions. However, this does not mean that there is no opportunity for traders to make profits during the Asian session. Traders can still take advantage of the low volatility by trading range-bound currency pairs.
Another characteristic of the Asian session is that it overlaps with the European session. This overlap occurs between 2 am GMT and 4 am GMT. During this period, the market usually experiences higher volatility, as traders from both sessions are active in the market. This overlap is often referred to as the “Asian-European overlap” or the “Tokyo-London overlap.”
It is important to note that while the Asian session officially closes at 8 am GMT, trading activity may continue beyond this time. This is because some countries in the Asian session, such as Singapore and Hong Kong, have their own forex markets that operate beyond the official Asian session hours. Therefore, traders who want to trade beyond the Asian session hours can still find opportunities in these markets.
In conclusion, the Asian forex market, also known as the Tokyo session, operates from 11 pm GMT on Sunday to 8 am GMT on Friday. The session is dominated by Japan, China, Australia, and New Zealand and accounts for around 21% of the total forex market turnover. The Asian session is characterized by lower volatility compared to the European and American sessions, but traders can still find opportunities by trading range-bound currency pairs. Additionally, the Asian session overlaps with the European session, which can result in higher volatility. It is important to note that trading activity may continue beyond the official Asian session hours in some countries, such as Singapore and Hong Kong.
