The forex market, also known as the foreign exchange market, is a decentralized global market where currencies are traded 24 hours a day, five days a week. The forex market is the largest financial market in the world, with an average daily trading volume of over $5 trillion. As it is a global market, different time zones and trading sessions affect the closing times of the forex market.
The forex market operates 24 hours a day, five days a week, starting from Sunday at 5 pm EST (Eastern Standard Time) until Friday at 5 pm EST. This means that the forex market is open from Monday morning in Asia until Friday evening in New York. However, the forex market is not open all the time during these 24 hours. The market is divided into four major sessions, each with its own trading hours.
The first session is the Asian session, which starts at 5 pm EST on Sunday and closes at 2 am EST on Monday. This session includes the markets of Tokyo, Hong Kong, and Singapore, and is known for its low volatility and liquidity. During this session, traders can focus on the Japanese yen, Australian dollar, and New Zealand dollar.
The second session is the European session, which starts at 2 am EST and closes at 11 am EST. This session includes the markets of London, Frankfurt, and Paris, and is known for its high volatility and liquidity. During this session, traders can focus on the euro, British pound, and Swiss franc.
The third session is the North American session, which starts at 8 am EST and closes at 5 pm EST. This session includes the markets of New York, Toronto, and Chicago, and is known for its high volatility and liquidity. During this session, traders can focus on the US dollar, Canadian dollar, and Mexican peso.
The fourth session is the Pacific session, which starts at 5 pm EST and closes at 2 am EST the following day. This session includes the markets of Sydney and Wellington, and is known for its low volatility and liquidity. During this session, traders can focus on the Australian dollar and New Zealand dollar.
It is important to note that while the forex market is open 24 hours a day, not all currency pairs are available for trading during all sessions. Some currency pairs, such as the US dollar and the euro, are available for trading in all sessions, while others, such as the Australian dollar and the New Zealand dollar, are only available during certain sessions.
In addition, the closing time of the forex market can be affected by public holidays in different countries. For example, if there is a public holiday in the US, the New York session may close early, which can affect trading in other sessions as well.
In conclusion, the forex market is open 24 hours a day, five days a week, starting from Sunday at 5 pm EST until Friday at 5 pm EST. However, the market is divided into four major sessions, each with its own trading hours, and not all currency pairs are available for trading during all sessions. Traders should be aware of the different time zones and trading sessions in order to maximize their trading opportunities and minimize their risks.
