The forex market, also known as the foreign exchange market, is a global decentralized market where currencies are traded. It is the largest financial market in the world, with an average daily trading volume of over $5 trillion. To participate in the forex market, traders need to know when the markets are open. In this article, we will discuss the opening times of the forex markets.
Forex Market Hours
The forex market is open 24 hours a day, five days a week, from Sunday at 5 p.m. Eastern Time (ET) to Friday at 5 p.m. ET. This means that trading is possible at any time during this period, making it a popular market for traders all over the world.
However, just because the market is open 24 hours a day does not mean that all currency pairs are available to trade at all times. The forex market is divided into three major trading sessions, each with its own opening and closing times: the Asian, European, and North American sessions.
Asian Trading Session
The Asian trading session begins at 6 p.m. ET on Sunday and ends at 4 a.m. ET on Monday. This session is dominated by the Japanese yen, which accounts for around 17% of all forex trading volume. Other major currencies traded during this session include the Australian dollar, New Zealand dollar, and the Hong Kong dollar.
The Asian session is known for its slower pace and lower volatility compared to the other trading sessions, as many traders in Europe and North America are still sleeping during this time.
European Trading Session
The European trading session begins at 3 a.m. ET and ends at 12 p.m. ET. This session is dominated by the euro, which accounts for around 39% of all forex trading volume. Other major currencies traded during this session include the British pound, Swiss franc, and the Swedish krona.
The European session is considered the most active trading session, as it overlaps with the Asian and North American sessions. It is characterized by high volatility and increased trading volume, making it a popular trading session for day traders and scalpers.
North American Trading Session
The North American trading session begins at 8 a.m. ET and ends at 5 p.m. ET. This session is dominated by the US dollar, which accounts for around 88% of all forex trading volume. Other major currencies traded during this session include the Canadian dollar and the Mexican peso.
The North American session is the second most active trading session, as it overlaps with the European session. It is characterized by high volatility and increased trading volume, making it a popular trading session for swing traders and position traders.
Weekend Trading
Although the forex market is open 24 hours a day, it is important to note that trading is not possible on weekends. The market is closed from Friday at 5 p.m. ET to Sunday at 5 p.m. ET. However, there are exceptions to this rule, as some brokers offer weekend trading on select currency pairs.
Conclusion
In conclusion, the forex market is open 24 hours a day, five days a week. Trading is possible at any time during this period, but currency pairs are only available to trade during their respective trading sessions. The Asian, European, and North American sessions each have their own opening and closing times, and traders should take these into consideration when planning their trading strategies. Additionally, it is important to note that trading is not possible on weekends, except for some brokers that offer weekend trading on select currency pairs.
