Forex (foreign exchange) trading is a decentralized global market where traders can buy, sell, and exchange currencies. It is the largest financial market in the world, with over $5.3 trillion traded daily. Forex trading is available 24 hours a day, five days a week, and it is open in different time zones across the world. In this article, we will discuss what time forex is open in New York and why it is important for traders.
Forex Market Hours
The forex market is open 24 hours a day, five days a week, and it operates in different time zones across the world. The market opens on Sunday at 5 pm EST (Eastern Standard Time) and closes on Friday at 5 pm EST. However, the market is not open continuously for 24 hours. Instead, it is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session.
The Sydney session starts at 5 pm EST on Sunday and closes at 2 am EST on Monday. The Tokyo session starts at 7 pm EST on Sunday and closes at 4 am EST on Monday. The London session starts at 3 am EST and closes at 12 pm EST. Finally, the New York session starts at 8 am EST and closes at 5 pm EST.
Why is New York Session Important?
The New York session is considered the most important session because it is the second-largest forex market after London. It accounts for around 19% of the total daily forex trading volume. The New York session overlaps with the London session for a few hours, which makes it the most active and volatile trading period of the day.
During the New York session, the US dollar is the most actively traded currency, and most of the economic news releases are released during this time. The news releases can have a significant impact on the currency prices, and traders need to be aware of them to make informed trading decisions.
The New York session is also important because it is the last trading session of the day. Traders who hold positions overnight need to close them before the market closes on Friday to avoid any weekend gaps. Weekend gaps are price differences between the closing price on Friday and the opening price on Monday. They can be caused by unexpected news events, and they can result in significant losses for traders who hold positions over the weekend.
Conclusion
Forex trading is available 24 hours a day, five days a week, and it operates in different time zones across the world. The New York session is the most important trading session because it is the second-largest forex market after London. It is also the last trading session of the day, and traders need to close their positions before the market closes on Friday to avoid any weekend gaps. Traders need to be aware of the economic news releases during the New York session as they can have a significant impact on the currency prices. Understanding the forex market hours is crucial for traders to make informed trading decisions and manage their risk effectively.
