Forex, also known as foreign exchange, is the largest financial market globally, with an average daily turnover of $5.3 trillion. It operates 24 hours a day, five days a week, from Monday to Friday. Forex trading hours vary depending on the time zone, and it is essential to know the opening and closing times to avoid missing out on profitable opportunities.
Forex trading opens on Monday at 5 pm EST (Eastern Standard Time) in Sydney, Australia, and closes on Friday at 5 pm EST in New York, USA. This means that forex trading is not available on weekends, which gives traders a chance to rest and analyse the market trends to prepare for the upcoming trading week.
However, it is important to note that although forex trading is available 24/5, not all markets are open at the same time. The forex market is divided into four main time zones: Sydney, Tokyo, London, and New York. Each time zone has its own opening and closing hours, which traders must take into account when trading forex.
The Sydney session starts at 5 pm EST and closes at 2 am EST. This session is considered the least volatile and most predictable as it coincides with the Asian markets’ opening hours. During this session, the Australian dollar, New Zealand dollar, and Japanese yen are the most active currencies.
The Tokyo session starts at 7 pm EST and closes at 4 am EST. This session is also known as the Asian session and is the most active during the Japanese yen’s trading hours. The yen is a popular currency among traders as it is considered a safe haven currency.
The London session starts at 3 am EST and closes at 12 pm EST. This session is considered the most volatile session as it coincides with the opening of the European markets. During this session, the euro, British pound, and Swiss franc are the most active currencies.
The New York session starts at 8 am EST and closes at 5 pm EST. This session is also known as the North American session and is the most active session as it coincides with the opening of the US markets. During this session, the US dollar, Canadian dollar, and Mexican peso are the most active currencies.
It is important to note that during the overlapping hours of the London and New York sessions, there is increased volatility and liquidity in the market. This means that traders can take advantage of profitable opportunities during these hours.
In conclusion, forex trading opens on Monday at 5 pm EST and closes on Friday at 5 pm EST. However, it is important to note that not all markets are open at the same time, and traders must take into account the opening and closing hours of each time zone. Knowing the forex trading hours can help traders plan and execute their trades effectively, leading to profitable outcomes.