The foreign exchange market, also known as the forex market, is the largest financial market in the world. It is a decentralized market where currencies are traded 24 hours a day, five days a week. This means that the forex day begins on Sunday evening and ends on Friday evening, with a small break between Friday and Sunday. However, the exact time the forex day begins and ends depends on the time zone you are in and the market you are trading.
To understand when the forex day begins, it is important to know the different time zones that exist in the world. The forex market is active in four major time zones: Sydney, Tokyo, London, and New York. Each time zone has its own trading hours, which overlap with the hours of the next time zone, creating a continuous 24-hour trading cycle.
The forex day begins in the Sydney time zone, which is the first to open on Sunday evening. The Sydney market opens at 5:00 PM EST (10:00 PM GMT), and closes at 2:00 AM EST (7:00 AM GMT). During this time, the major currencies traded are the Australian dollar, New Zealand dollar, and Japanese yen. As the Sydney market closes, the Tokyo market begins to open.
The Tokyo market opens at 7:00 PM EST (12:00 AM GMT) and closes at 4:00 AM EST (9:00 AM GMT). During this time, the major currencies traded are the Japanese yen, US dollar, and euro. As the Tokyo market closes, the London market begins to open.
The London market is the largest forex market in the world and is known for its high liquidity. It opens at 3:00 AM EST (8:00 AM GMT) and closes at 12:00 PM EST (5:00 PM GMT). During this time, the major currencies traded are the euro, British pound, and US dollar. As the London market closes, the New York market begins to open.
The New York market is the last market to open and the second-largest forex market in the world. It opens at 8:00 AM EST (1:00 PM GMT) and closes at 5:00 PM EST (10:00 PM GMT). During this time, the major currencies traded are the US dollar, Canadian dollar, and Mexican peso.
It is important to note that the trading hours for each market may vary depending on daylight saving time and public holidays. During daylight saving time, the trading hours may shift by one hour. Additionally, some markets may close or have reduced trading hours on public holidays.
In conclusion, the forex day begins on Sunday evening in the Sydney time zone and ends on Friday evening in the New York time zone. The exact time the forex day begins and ends depends on the time zone you are in and the market you are trading. It is important to be aware of the trading hours for each market and any changes that may occur due to daylight saving time or public holidays.
