The forex market is a decentralized market where traders from all over the world trade currencies. Due to the different time zones of the traders, the forex market operates 24 hours a day from Monday to Friday. However, the market is not open all the time, and there are specific times when the market opens and closes.
Forex market hours are divided into four major trading sessions: Sydney, Tokyo, London, and New York. Each session has its own unique characteristics, and traders need to be aware of the trading hours to maximize their trading opportunities.
The Sydney session starts at 10 pm GMT on Sunday and lasts until 7 am GMT on Monday. This session is relatively quiet, and the market is thinly traded compared to the other sessions. The Asian markets dominate this session, and the major currency pairs that are traded during this session are AUD/USD, NZD/USD, and USD/JPY.
The Tokyo session starts at 12 am GMT and lasts until 9 am GMT. This session is also known as the Asian session, and it is the busiest session among the three. The major currency pairs traded during this session are USD/JPY, EUR/JPY, and GBP/JPY.
The London session starts at 8 am GMT and lasts until 5 pm GMT. This session is the most active session among the four, and it is known for its high trading volume and volatility. The major currency pairs traded during this session are EUR/USD, GBP/USD, and USD/CHF.
The New York session starts at 1 pm GMT and lasts until 10 pm GMT. This session is the last session of the day and is known for its high trading volume and volatility. The major currency pairs traded during this session are USD/CAD, EUR/USD, and GBP/USD.
It is essential to note that the forex market is closed on weekends. The market closes at 10 pm GMT on Friday and opens again at 10 pm GMT on Sunday. During the weekend, traders can still access their trading platforms, but they cannot execute any trades as the market is closed.
Another important factor to consider is that during holidays, the forex market may operate on a reduced schedule or may be closed altogether. Traders need to be aware of the holiday schedule to avoid unexpected market closures that can lead to losses.
In conclusion, the forex market operates 24 hours a day from Monday to Friday, but it is not open all the time. The market is divided into four major trading sessions, and each session has its own unique characteristics. Traders need to be aware of the trading hours to maximize their trading opportunities, and they should also be aware of the holiday schedule to avoid unexpected market closures.
