The foreign exchange market, also known as the forex market, is the largest financial market in the world. With a daily turnover of over $5 trillion, it is a highly liquid market where traders can buy and sell currencies from all around the globe. As the forex market is a global market, it operates 24 hours a day, five days a week. But what time on Sunday do the forex markets open?
To understand when the forex markets open, it is essential to understand the different time zones. There are four main forex trading sessions – the Sydney session, the Tokyo session, the London session, and the New York session. Each session operates during different hours of the day, and they overlap with each other, creating a 24-hour trading day.
The forex market opens on Sunday at 5:00 pm EST (Eastern Standard Time), which is 10:00 pm GMT (Greenwich Mean Time). The market closes on Friday at 5:00 pm EST. The reason why the forex market opens on Sunday is that the market is based on the time zone of the countries where the major financial centers are located.
The first trading session to open on Sunday is the Sydney session, which operates from 5:00 pm EST to 2:00 am EST. The Sydney session is followed by the Tokyo session, which operates from 7:00 pm EST to 4:00 am EST. During these two sessions, the majority of the Asian markets are open, including Japan, Singapore, Hong Kong, and Australia.
The London session is the most active trading session, and it operates from 3:00 am EST to 12:00 pm EST. The London session overlaps with the Asian sessions, which leads to high volatility and increased trading activity. During the London session, the majority of the European markets are open, including the United Kingdom, Germany, France, and Switzerland.
The New York session is the last trading session, and it operates from 8:00 am EST to 5:00 pm EST. During this session, the majority of the North American markets are open, including the United States and Canada. The New York session overlaps with the London session for a few hours, creating a highly active trading period.
It is important to note that the forex market is not open every day of the year. The market is closed on weekends and on certain holidays, such as Christmas, New Year’s Day, and Easter. It is also important to check for any market closures or changes in trading hours due to unforeseen events, such as natural disasters or political upheavals.
In conclusion, the forex market is a 24-hour market that operates from Sunday at 5:00 pm EST to Friday at 5:00 pm EST. The market opens on Sunday with the Sydney session, followed by the Tokyo session, the London session, and the New York session. Each session operates during different hours of the day, and they overlap with each other, creating a highly active trading period. It is important to be aware of the different time zones and trading sessions when trading in the forex market.
