The forex market is one of the largest and most liquid financial markets in the world. It is open 24 hours a day, five days a week, allowing traders to engage in forex trading at any time of the day or night. However, forex trading hours in the US are not the same as in other countries. So, what time does US forex open?
Forex trading hours in the US
The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. The New York session is the most active trading session in the forex market, and it accounts for almost 20% of the daily trading volume.
The New York session opens at 8:00 AM EST and closes at 5:00 PM EST. During this time, the market is the most active, and traders can expect high liquidity and volatility. The New York session overlaps with the London session for about three hours, and this is when the market is the most liquid.
The London session opens at 3:00 AM EST and closes at 12:00 PM EST. The Sydney session opens at 5:00 PM EST and closes at 2:00 AM EST, while the Tokyo session opens at 7:00 PM EST and closes at 4:00 AM EST.
The forex market is closed on weekends, but it opens on Sunday at 5:00 PM EST with the Sydney session. The New York session opens on Monday at 8:00 AM EST.
Factors that influence forex trading hours
The forex market is open 24 hours a day, five days a week because it is a global market that operates across different time zones. The trading hours are influenced by several factors, including:
1. Time zone differences
The forex market is a global market, and it operates across different time zones. The trading hours are determined by the opening and closing times of the various trading sessions. For instance, the New York session opens at 8:00 AM EST, which is 1:00 PM GMT.
2. Economic events
Economic events such as interest rate decisions, GDP releases, and employment reports can influence forex trading hours. Traders tend to be more active during times of high volatility, and economic events can create volatility in the market.
3. Market participants
The forex market is driven by market participants such as central banks, hedge funds, and commercial banks. These participants have different trading strategies, and they tend to be more active during certain trading hours. For instance, central banks tend to be more active during the London and New York sessions.
4. Technology
The advancement in technology has made it possible for traders to engage in forex trading at any time of the day or night. Online trading platforms allow traders to access the market from anywhere in the world, making it possible to trade during off-hours.
Conclusion
The forex market is open 24 hours a day, five days a week, allowing traders to engage in forex trading at any time. However, forex trading hours in the US are not the same as in other countries. The New York session is the most active trading session in the forex market, and it opens at 8:00 AM EST and closes at 5:00 PM EST. The trading hours are influenced by several factors, including time zone differences, economic events, market participants, and technology. As a trader, it is essential to understand the trading hours to maximize your trading opportunities.
