The foreign exchange market, also known as forex or FX, is a decentralized global marketplace where currencies are traded 24 hours a day, five days a week. The forex market is open around the clock, from Sunday evening to Friday afternoon, and trading takes place in various time zones across the world. As a result, it is essential to understand the opening and closing times of different forex markets, particularly if you’re trading from the Pacific Standard Time (PST) zone.
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 Sydney and Tokyo sessions overlap for a few hours, while the London and New York sessions overlap for several hours, providing traders with the opportunity to trade 24 hours a day. However, the market is not equally active throughout the day, and traders should consider the opening and closing times of each session to maximize their potential profits.
The Sydney session is the first to open, starting at 2:00 PM PST and closing at 11:00 PM PST. The Sydney session typically accounts for only around 4% of the total forex market volume, and it is characterized by low volatility and limited liquidity. During this session, the Australian dollar (AUD), New Zealand dollar (NZD), and Japanese yen (JPY) are the most actively traded currencies.
The Tokyo session is the second to open, starting at 4:00 PM PST and closing at 1:00 AM PST. Japan is the world’s third-largest economy, and the Tokyo session accounts for around 21% of the total forex market volume. During this session, the Japanese yen (JPY) is the most actively traded currency. Traders should also pay attention to economic announcements from Japan, as they can significantly impact the currency’s value.
The London session is the third to open, starting at 12:00 AM PST and closing at 9:00 AM PST. The London session is the most active forex trading session, accounting for around 35% of the total market volume. During this session, the British pound (GBP), euro (EUR), and Swiss franc (CHF) are the most actively traded currencies. The London session also overlaps with the Tokyo session, providing traders with the opportunity to trade major currency pairs such as EUR/JPY, GBP/JPY, and USD/JPY.
The New York session is the last to open, starting at 5:00 AM PST and closing at 2:00 PM PST. The New York session accounts for around 19% of the total forex market volume and usually experiences high volatility during its opening hours. During this session, the US dollar (USD) is the most actively traded currency, followed by the euro (EUR) and the British pound (GBP). Traders should also pay attention to economic announcements from the US, as they can significantly impact the currency’s value.
In conclusion, the forex market is open 24 hours a day, five days a week, and trading takes place in various time zones across the world. Traders in the Pacific Standard Time (PST) zone should consider the opening and closing times of different forex trading sessions to maximize their potential profits. The Sydney session is the first to open, followed by the Tokyo, London, and New York sessions. Knowing when each session opens and closes can help traders identify the most active trading hours and take advantage of market volatility.
