Forex trading is a popular way to invest and make money in the financial market. It is the buying and selling of currencies, with the aim of making a profit from the fluctuations in their value. Forex trading is accessible to anyone, from individual investors to large corporations. However, to trade forex, you need to understand when the market is open and when it is closed. In this article, we will discuss the times when you can trade forex.
Forex markets are open 24 hours a day, five days a week. However, this does not mean that you can trade all day, every day. Forex trading is divided into three main sessions: the Asian, European, and US sessions. Each session has its unique characteristics and trading hours.
The Asian session starts at 11:00 pm GMT on Sunday and ends at 8:00 am GMT on Monday. It is the first session of the trading week and opens in Tokyo, Japan. The Asian session is considered the least volatile of the three sessions because it is during this time that the markets in Europe and the United States are closed. The currencies that are traded during this session include the Japanese yen, the Australian dollar, and the New Zealand dollar.
The European session starts at 7:00 am GMT and ends at 4:00 pm GMT. It is the most active session of the three because it overlaps with the Asian and US sessions. The European session is also the most volatile, which means that there is a high chance of making profits but also a high risk of losing money. The currencies that are traded during this session include the euro, the British pound, and the Swiss franc.
The US session starts at 12:00 pm GMT and ends at 9:00 pm GMT. It is the last session of the trading day and opens in New York, the financial capital of the world. The US session is the second most active session and also the second most volatile. This is because it overlaps with the European session, which means that there is a lot of trading activity during this time. The currencies that are traded during this session include the US dollar, the Canadian dollar, and the Mexican peso.
It is important to note that the times mentioned above are in GMT. If you live in a different time zone, you will need to adjust the trading hours to your local time. For example, if you live in New York, the US session will start at 8:00 am EST and end at 5:00 pm EST.
Another factor to consider when trading forex is the public holidays in different countries. Forex markets are closed on public holidays, which can affect the trading volume and volatility. For example, if it is a public holiday in Japan, the trading volume for the Japanese yen may be lower than usual, which can affect its value.
In conclusion, forex trading is available 24 hours a day, five days a week. However, you can only trade during the three main sessions: the Asian, European, and US sessions. The Asian session is the least volatile, while the European and US sessions are the most active and volatile. It is important to know the trading hours in your local time and to keep track of public holidays in different countries. By understanding when you can trade forex, you can plan your trading strategy and increase your chances of making a profit.
