Forex, short for foreign exchange, is the largest financial market in the world. It involves buying and selling different currencies with the aim of making a profit. The forex market is open 24 hours a day, five days a week, from Monday to Friday. However, the market is not open all the time, and there are specific hours during which trading is more active and profitable.
The forex market is made up of four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session is named after the city where it is headquartered. The sessions follow one another in a continuous cycle, with each one overlapping the next. This creates a seamless trading day that lasts 24 hours.
The Sydney session is the first session of the trading day. It starts at 10 pm GMT on Sunday and ends at 7 am GMT on Monday. This session is relatively quiet compared to the other sessions, as most of the major financial centers are still closed. The Sydney session is primarily focused on the Australian and New Zealand markets, which are major players in the Asia-Pacific region.
The Tokyo session starts at 12 am GMT and ends at 9 am GMT. This session is more active than the Sydney session, as it covers the Japanese and other Asian markets. The Japanese yen is the third most traded currency in the world, and as such, the Tokyo session is a crucial period for traders who specialize in yen trading.
The London session is the most active session of the day. It starts at 8 am GMT and ends at 4 pm GMT. This session covers the European markets, which include the UK, Germany, France, and Switzerland. The London session is the center of the forex market, and most of the major currency pairs are traded during this period. The Euro, the British pound, and the Swiss franc are among the most actively traded currencies during the London session.
The New York session is the last session of the trading day. It starts at 1 pm GMT and ends at 10 pm GMT. This session covers the North American markets, which include the US and Canada. The New York session is also an active session, and it is particularly important for traders who specialize in the US dollar. The US dollar is the most traded currency in the world, and as such, any news or events that affect the US economy can have a significant impact on the forex market.
It is important to note that the forex market is not open on weekends. Trading stops on Friday at 10 pm GMT and resumes on Sunday at 10 pm GMT. During this period, traders can still access their accounts and monitor their positions, but they cannot execute trades. This is because most of the major financial centers are closed on weekends.
In conclusion, the forex market is open 24 hours a day, five days a week, from Monday to Friday. The market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session covers different markets and currency pairs, and as such, traders need to be aware of the best times to trade based on their trading strategies and goals. It is also important to note that the forex market is closed on weekends.