Forex trading is a global market that runs 24 hours a day, five days a week. Since the forex market is decentralized and operates across different time zones, it is important to know when the market opens and closes in different regions around the world. In this article, we will discuss what time forex trading starts and how it varies across different time zones.
Forex Market Hours
The forex market is open 24 hours a day, five days a week. However, this doesn’t mean that the market is active all the time. The forex market is active during specific hours, and these hours vary across different time zones. The forex market is divided into three major trading sessions: the Asian session, the European session, and the US session.
The Asian Session
The Asian session starts at 9:00 PM GMT and ends at 6:00 AM GMT. This session is also known as the Tokyo session because it is centered around the trading activity in Tokyo, Japan. During this session, the major currency pairs that are traded include the USD/JPY, EUR/JPY, and AUD/JPY. The Asian session is known for its low volatility and liquidity, and it is often used as a period of consolidation for traders.
The European Session
The European session starts at 7:00 AM GMT and ends at 4:00 PM GMT. This session is also known as the London session because it is centered around the trading activity in London, UK. During this session, the major currency pairs that are traded include the EUR/USD, GBP/USD, and USD/CHF. The European session is known for its high volatility and liquidity, and it is often used as a period of high trading activity for traders.
The US Session
The US session starts at 12:00 PM GMT and ends at 9:00 PM GMT. This session is also known as the New York session because it is centered around the trading activity in New York, USA. During this session, the major currency pairs that are traded include the USD/CAD, USD/CHF, and USD/JPY. The US session is known for its high volatility and liquidity, and it is often used as a period of high trading activity for traders.
Forex Trading Hours by Time Zone
Forex trading hours vary across different time zones, and it is important to know when the market is open in your time zone. Here is a breakdown of forex trading hours by time zone:
– Eastern Standard Time (EST): The forex market opens at 5:00 PM EST on Sunday and closes at 5:00 PM EST on Friday.
– Central Standard Time (CST): The forex market opens at 4:00 PM CST on Sunday and closes at 4:00 PM CST on Friday.
– Pacific Standard Time (PST): The forex market opens at 2:00 PM PST on Sunday and closes at 2:00 PM PST on Friday.
– Greenwich Mean Time (GMT): The forex market opens at 10:00 PM GMT on Sunday and closes at 10:00 PM GMT on Friday.
– Australian Eastern Standard Time (AEST): The forex market opens at 7:00 AM AEST on Monday and closes at 7:00 AM AEST on Saturday.
Conclusion
In conclusion, the forex market is a global market that operates 24 hours a day, five days a week. The market is divided into three major trading sessions: the Asian session, the European session, and the US session. The forex market hours vary across different time zones, and it is important to know when the market is open in your time zone. By understanding the forex market hours, traders can plan their trading strategies and take advantage of the market’s volatility and liquidity.
