Forex markets, also known as the foreign exchange markets, are open 24 hours a day, five days a week. However, there are certain times when forex markets are closed or have limited trading hours. One of these times is on Sundays.
Forex markets open on Sunday at 5:00 pm Eastern Standard Time (EST) and close on Friday at 5:00 pm EST. This means that forex markets are open for 24 hours a day from Monday to Friday, with a brief pause on weekends.
However, it is important to note that forex markets are not open during the entire 24-hour period from Sunday to Friday. Instead, there are certain periods during the week when trading activity is more active and other periods when it is less active.
The forex market is divided into three main trading sessions: the Asian session, the European session, and the North American session. Each session has its own unique characteristics, and the trading hours for each session are different.
The Asian session begins on Sunday at 5:00 pm EST and ends on Monday at 4:00 am EST. This session is characterized by low volatility, with most of the major currency pairs moving in a narrow range.
The European session begins at 3:00 am EST and ends at 12:00 pm EST. This is the busiest session of the day, with high trading activity and volatility. The European session is also known for its economic news releases, which can have a significant impact on currency prices.
The North American session begins at 8:00 am EST and ends at 5:00 pm EST. This session is also characterized by high trading activity and volatility, especially during the overlap period with the European session.
When forex markets open on Sunday, there is usually little trading activity during the Asian session, as most traders in Europe and North America are not yet active. This leads to lower liquidity and higher spreads, making it more difficult to execute trades.
However, as the European and North American sessions begin, trading activity increases, and liquidity improves. This makes it easier for traders to execute trades and for prices to move in response to market events.
In conclusion, forex markets open on Sunday at 5:00 pm EST and close on Friday at 5:00 pm EST. However, trading activity is limited during the Asian session, and it is not until the European and North American sessions begin that trading activity and liquidity increase. Understanding the trading hours and characteristics of each session is important for forex traders to maximize their trading opportunities and minimize their risks.
