The forex market, also known as the foreign exchange market, is the largest financial market in the world. It is a decentralized market where currencies are traded 24/5. The forex market is divided into four major trading sessions – Sydney, Tokyo, London, and New York. Each session has its own unique characteristics and trading opportunities.
In the UK, the forex market opens at 10 pm on Sunday and closes at 10 pm on Friday. This means that the forex market is open for trading for 24 hours a day, 5 days a week. However, not all trading sessions are equally active. The London session is considered the most active and liquid session, as it overlaps with the opening of the New York session.
The forex market opens in the UK at 10 pm on Sunday because this is the time when the Asian markets, including Tokyo and Sydney, open for trading. The Asian markets are the first to open because they are on the other side of the world from the UK. This means that when it is daytime in Asia, it is nighttime in the UK.
The Tokyo session is the first major trading session to open, and it starts at 11 pm UK time. The Tokyo session is known for its volatility, as it is the time when the Bank of Japan releases its monetary policy decisions. Traders also watch the economic data releases from China, as they can impact the Japanese yen.
The Sydney session opens at midnight UK time and is known for its low volatility. The Australian dollar is the main currency traded during this session, and traders watch the economic data releases from Australia, such as the employment data and the Reserve Bank of Australia’s monetary policy decisions.
The London session is the most active trading session, and it opens at 8 am UK time. The London session overlaps with the end of the Tokyo session and the start of the New York session. This means that there is a lot of liquidity and volatility during this session. The London session is known for its high trading volumes and tight spreads.
The New York session opens at 1 pm UK time and is known for its high volatility. The New York session overlaps with the end of the London session and is the time when most economic data releases from the US are released. Traders also watch the economic data releases from Canada, as the Canadian dollar is heavily influenced by the US economy.
In conclusion, the forex market opens in the UK at 10 pm on Sunday and closes at 10 pm on Friday. The forex market is divided into four major trading sessions – Sydney, Tokyo, London, and New York. The London session is the most active and liquid session, as it overlaps with the opening of the New York session. Traders need to be aware of the trading hours of each session and the economic data releases that can impact the currency pairs they are trading. With the right knowledge and strategies, traders can take advantage of the opportunities in the forex market.
