Forex, or foreign exchange, is a decentralized market where traders exchange currencies. It operates 24 hours a day, five days a week, making it the largest financial market globally in terms of volume of trading. However, since the forex market operates in different time zones, it can be challenging to determine the end of the day forex.
In general, the forex market operates from Sunday 5 pm EST to Friday 5 pm EST. During this time, there are three main trading sessions: the Asian session, the European session, and the US session. Each session has different trading hours and market activity, which affects the price movements of currencies.
In the Asian session, which starts at 5 pm EST on Sunday and ends at 2 am EST on Monday, the main currencies traded are the Japanese yen, Australian dollar, and New Zealand dollar. The European session, which starts at 2 am EST and ends at 11 am EST, is the busiest trading session, with the major currencies traded being the euro, British pound, and Swiss franc. The US session, which starts at 8 am EST and ends at 5 pm EST, is the last trading session of the day and sees the most volatility in the market.
With the forex market operating 24 hours a day, it can be challenging to determine the end of the day forex. However, there are a few ways traders can determine when the day ends in the forex market.
One way is to use the New York close, which refers to the closing time of the US session at 5 pm EST. Many traders use the New York close to determine the end of the trading day, as it’s the last major session of the day and sees the most market activity. Using the New York close also helps traders to calculate the daily candlestick charts, which are used to identify trends and patterns in the market.
Another way to determine the end of the day in forex is to use the GMT close, which refers to the closing time of the European session at 11 pm GMT. The GMT close is widely used in the forex market, as it’s the standard time used by traders worldwide. Using the GMT close helps to standardize the trading day across different time zones and countries.
In addition to using the New York close or GMT close, traders can also determine the end of the day forex by using a trading platform that displays the trading hours in their local time zone. This is particularly useful for traders who live in different time zones and want to know when the forex market opens and closes in their local time.
It’s worth noting that even though the forex market operates 24 hours a day, not all currency pairs are active at all times. For example, the Australian dollar and New Zealand dollar are more active during the Asian session, while the euro and British pound are more active during the European session. Traders should be aware of the market activity for each currency pair they trade and adjust their trading strategy accordingly.
In conclusion, the end of the day forex can be determined by using the New York close, GMT close, or a trading platform that displays the trading hours in the trader’s local time zone. Traders should also be aware of the market activity for each currency pair they trade and adjust their trading strategy accordingly.