The foreign exchange market, also known as the forex market, is a decentralized market in which currencies are traded. The forex market operates 24 hours a day, five days a week, across different time zones, making it one of the most liquid and accessible markets in the world. However, it is important to note that while the forex market is open 24/5, not all trading sessions are created equal in terms of liquidity, volatility, and trading opportunities.
In this article, we will explain what time the different forex markets open and what traders can expect during each session.
Asian Session
The Asian session, also known as the Tokyo session, starts at midnight GMT (7:00 pm EST) and ends at 9:00 am GMT (4:00 am EST). This session is characterized by low volatility and low trading volume, as most of the major financial centers in the world are closed during this time. The Tokyo session is the first to open after the weekend, so traders should be aware of any news or events that may have occurred during the weekend that could impact the market.
European Session
The European session, also known as the London session, is the most active forex trading session. It starts at 8:00 am GMT (3:00 am EST) and ends at 5:00 pm GMT (12:00 pm EST). During this session, most of the major financial centers in Europe are open, including London, Frankfurt, Paris, and Zurich. The London session accounts for over 30% of the global forex trading volume, making it the most liquid session. Traders should be aware of any economic news releases scheduled during this session, as they can cause significant movements in the market.
North American Session
The North American session, also known as the New York session, starts at 1:00 pm GMT (8:00 am EST) and ends at 10:00 pm GMT (5:00 pm EST). This session overlaps with the European session for a few hours, which creates a period of high trading volume and volatility. The New York session is the second most active forex trading session, accounting for around 19% of the global forex trading volume. Traders should be aware of any news releases or events that may occur during this session that could impact the market.
Other Sessions
While the Asian, European, and North American sessions are the most active forex trading sessions, there are also other sessions that traders should be aware of. These sessions include the Sydney session, which starts at 10:00 pm GMT (5:00 pm EST) and ends at 7:00 am GMT (2:00 am EST), and the Wellington session, which starts at 9:00 pm GMT (4:00 pm EST) and ends at 6:00 am GMT (1:00 am EST). These sessions are less active than the major sessions, but they can still provide trading opportunities.
Conclusion
In conclusion, the forex market operates 24 hours a day, five days a week, across different time zones. The Asian, European, and North American sessions are the most active forex trading sessions, with the London session being the most liquid. Traders should be aware of any economic news releases or events that may occur during these sessions that could impact the market. It is important to note that while the forex market is open 24/5, not all trading sessions are created equal in terms of liquidity, volatility, and trading opportunities.
