The foreign exchange market, or forex, is the largest and most liquid financial market in the world. It operates 24 hours a day, five days a week, across different time zones. Forex trading is decentralized and has no physical location where trading takes place. Instead, it is conducted electronically through a global network of banks, financial institutions, and individual traders. So when do markets open forex?
Forex trading starts on Sunday at 5 pm EST when the Sydney session opens. The Sydney session is the first to open, followed by the Tokyo, London, and New York sessions. The forex market remains open 24 hours a day, with each session overlapping with the next. This means that traders can trade any time of the day or night, depending on their location and the session they wish to trade.
The Sydney session, which starts at 5 pm EST and ends at 2 am EST, is the quietest of all the forex sessions. It is characterized by low volatility and low liquidity, with fewer traders participating. This is because most of the major financial centers in the world are closed during this time.
The Tokyo session opens at 7 pm EST and closes at 4 am EST. It is also known as the Asian session and is the second busiest forex trading session after the London session. The Tokyo session is characterized by high volatility and liquidity, with significant price movements occurring during this time. Many traders prefer to trade during the Tokyo session because of the high volatility and liquidity.
The London session opens at 3 am EST and closes at 12 pm EST. It is the most active forex trading session, accounting for more than 30% of the total daily forex trading volume. The London session is characterized by high liquidity, tight spreads, and significant price movements. Many traders focus on the London session because of the high trading volume and volatility.
The New York session opens at 8 am EST and closes at 5 pm EST. It is the last forex trading session of the day and is also one of the busiest. The New York session is characterized by high volatility and liquidity, with significant price movements occurring during this time. Many traders focus on the New York session because of the high trading volume and volatility.
In summary, the forex market is open 24 hours a day, five days a week. The Sydney session starts at 5 pm EST, followed by the Tokyo, London, and New York sessions. Each session overlaps with the next, providing traders with the opportunity to trade at any time of the day or night. However, traders should be aware of the different characteristics of each session, such as volatility and liquidity, and choose to trade during the session that suits their trading style and strategy.
