The forex market is the largest and most liquid investment market in the world. It is a decentralized market that operates 24 hours a day, five days a week, excluding weekends and public holidays. The forex market is open 24 hours a day to accommodate traders from different time zones around the world. However, certain hours are more active than others, and traders need to be aware of these times to make informed trading decisions.
Forex trading hours vary depending on the region and the financial center that traders are operating in. Forex trading begins in Asia on Sunday evening and ends in New York on Friday evening. The forex market is divided into four major trading sessions: the Asian session, the European session, the US session, and the Pacific session.
The Asian session starts at 5:00 PM EST on Sunday and ends at 2:00 AM EST on Monday. This session is dominated by the Tokyo market and is known for its relatively low volatility. The European session starts at 2:00 AM EST and ends at 11:00 AM EST. This session is dominated by London, which is the largest financial center in the world. The European session is characterized by high volatility and liquidity, making it an ideal time for traders to enter and exit trades.
The US session begins at 8:00 AM EST and ends at 5:00 PM EST. This session is dominated by New York and is the most active and volatile session of the day. The US session is the best time for traders to engage in high-volume trading as the market is highly liquid. The Pacific session starts at 9:00 PM EST and ends at 6:00 AM EST. This session is dominated by the Sydney market and is known for its relatively low volatility.
The forex market is closed on weekends and public holidays. The market closes on Friday at 5:00 PM EST and reopens on Sunday at 5:00 PM EST. However, traders need to be aware of the different time zones around the world as some markets may open earlier or close later than others.
Traders need to be aware of the different trading sessions and the times when they overlap. The overlap between different trading sessions is known as the trading window, and it is the best time for traders to engage in high-volume trading. The trading window occurs when two trading sessions are open simultaneously, and traders can take advantage of the high liquidity and volatility to make profitable trades.
The most significant overlap occurs between the European and US sessions, which is from 8:00 AM EST to 11:00 AM EST. This overlap is known as the “golden hour” as it is the most active and volatile time of the day. The golden hour is an ideal time for traders to enter and exit trades as the market is highly liquid.
In conclusion, the forex market is open 24 hours a day, five days a week, excluding weekends and public holidays. The market is divided into four major trading sessions: the Asian session, the European session, the US session, and the Pacific session. Traders need to be aware of the different trading sessions and the times when they overlap to make informed trading decisions. The most significant overlap occurs between the European and US sessions, which is from 8:00 AM EST to 11:00 AM EST, and it is known as the “golden hour”.
