The foreign exchange market, commonly referred to as forex, is a global decentralized market where currencies are traded. It is open 24 hours a day, five days a week, from Monday to Friday. However, there are different trading sessions during the day that traders should be aware of.
The forex market operates in different time zones, which means that it is always open somewhere in the world. The market opens on Sunday at 5:00 pm EST when the Sydney market opens, and it closes on Friday at 5:00 pm EST when the New York market closes. However, this does not mean that the market is active all day long.
The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its own unique characteristics, and traders who are aware of these sessions can take advantage of them to make profitable trades.
The Sydney session is the first session of the day, and it opens at 5:00 pm EST on Sunday. It closes at 2:00 am EST, after which the Tokyo session begins. The Tokyo session is known for its high volatility due to the large volume of trades from Japanese traders. It opens at 7:00 pm EST and closes at 4:00 am EST.
The London session is the most active session of the day, accounting for almost 40% of the daily trading volume. It opens at 3:00 am EST and closes at 12:00 pm EST. During this session, traders can take advantage of the high volatility and liquidity to make profitable trades.
The New York session is the last session of the day, and it opens at 8:00 am EST and closes at 5:00 pm EST. This session also has high volatility, as it overlaps with the London session for several hours. Traders who are aware of the market trends during this session can make profitable trades.
It is important to note that the forex market does not shut down completely during the day. Even when one session ends, another session begins in a different time zone. This means that the market is always open somewhere in the world, and traders can take advantage of this to make profitable trades.
In conclusion, the forex market is open 24 hours a day, five days a week, from Monday to Friday. However, it is important for traders to be aware of the different trading sessions during the day to take advantage of the high volatility and liquidity of the market. The Sydney, Tokyo, London, and New York sessions are the major trading sessions of the day, and traders who are aware of these sessions can make profitable trades.
