The foreign exchange market, or forex, is the world’s largest financial market, with over $5 trillion traded every day. It is open 24 hours a day, five days a week, allowing traders to buy and sell currencies at any time. However, while the forex market never closes, there are specific times when the market is most active, and trading volumes are highest.
Forex Market Hours
The forex market operates on a 24-hour basis, starting from 5 pm EST on Sunday and closing at 4 pm EST on Friday. However, it is not active for the entire 24 hours. Instead, there are specific times when the market is most active, and trading volumes are highest. These are known as trading sessions and are based on the different time zones of the world.
There are four major trading sessions in the forex market: 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 ends at 2 am EST on Monday. The Tokyo session starts at 7 pm EST on Sunday and ends at 4 am EST on Monday. The London session starts at 3 am EST and ends at 12 pm EST, while the New York session starts at 8 am EST and ends at 5 pm EST.
The most active trading session is the London session, which accounts for around 35% of the total daily trading volume. This is followed by the New York session, which accounts for around 20% of the total daily trading volume. The Sydney and Tokyo sessions are relatively quiet and account for around 4% and 19% of the total daily trading volume, respectively.
What Time Will The Forex Market Open Today?
The forex market is open 24 hours a day, so it never closes. However, trading volumes and volatility can vary depending on the trading session. If you are looking to trade during a specific trading session, you must check the opening and closing times for that session.
For example, if you are in the United States and want to trade during the London session, you would need to be awake during the early hours of the morning. The London session starts at 3 am EST, which is 8 am GMT. Similarly, if you want to trade during the New York session, you need to be awake during the late morning or early afternoon. The New York session starts at 8 am EST and ends at 5 pm EST.
It is essential to note that the forex market is affected by various factors, such as news releases, economic data, and geopolitical events. These can cause significant fluctuations in currency prices, even during quiet trading sessions. Therefore, traders must keep an eye on the news and stay informed about any market-moving events.
Conclusion
The forex market is open 24 hours a day, five days a week, allowing traders to buy and sell currencies at any time. However, the market is most active during specific trading sessions, which are based on the different time zones of the world. The most active trading session is the London session, followed by the New York session. If you want to trade during a specific trading session, you must check the opening and closing times for that session. However, traders must stay informed about any market-moving events that can cause significant fluctuations in currency prices.
