The forex market is the largest financial market in the world, with an estimated daily turnover of around $5.3 trillion. It is a decentralized market that operates 24 hours a day, five days a week, excluding weekends and major holidays.
The forex market is open around the clock because it operates in different time zones, starting from Asia, moving to Europe, and ending in North America. The market’s opening hours can vary depending on the country and time zone, making it important for traders to know when the market opens and closes in their region.
The forex market’s trading hours can be divided into four main sessions: the Asian session, the European session, the North American session, and the Pacific session.
The Asian session is the first to open, starting at 5:00 pm EST on Sunday and closing at 4:00 am EST on Monday. This session is dominated by trading in the Japanese yen, Australian dollar, and New Zealand dollar.
The European session starts at 3:00 am EST and closes at 12:00 pm EST. It is the most active session, with major currencies such as the euro, British pound, and Swiss franc being heavily traded.
The North American session starts at 8:00 am EST and closes at 5:00 pm EST. This session is dominated by the US dollar, which is involved in around 85% of all forex trades.
Lastly, the Pacific session starts at 9:00 pm EST and closes at 6:00 am EST. It is the quietest session, with low trading volume and liquidity.
It is worth noting that the forex market’s trading hours can be affected by news releases and events that occur outside of regular trading hours. For example, the market may experience increased volatility during major economic announcements or political events.
In conclusion, the forex market is open 24 hours a day, five days a week, starting from the Asian session and ending in the Pacific session. The market’s opening hours can vary depending on the time zone, making it important for traders to be aware of the trading hours in their region. While the forex market operates around the clock, it is important to understand that the market’s trading hours can be affected by news releases and events that occur outside of regular trading hours.
