Forex or foreign exchange is a decentralized market that operates 24 hours a day, 5 days a week. Trading activities take place in different time zones around the world, and traders need to know when a new trading day begins in order to plan their trades effectively. In this article, we will explore when a day starts in forex and the factors that affect it.
The forex market is open 24 hours a day, from Sunday evening to Friday night. However, this does not mean that all trading activities take place at the same time. The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its own opening and closing times, and traders need to know these times to determine when a new trading day starts.
The Sydney session is the first session to open, and it starts at 10:00 PM GMT on Sunday. This session is typically the least volatile, as the market is still waking up after the weekend break. The Tokyo session starts at 12:00 AM GMT and is characterized by higher volatility, as it overlaps with the Sydney session. The London session is the most active session, and it starts at 8:00 AM GMT. This session overlaps with the Tokyo session and provides traders with plenty of trading opportunities. The New York session is the last session to open and starts at 1:00 PM GMT. This session is also highly active, as it overlaps with the London session.
In most cases, a new trading day in forex starts at 5:00 PM EST, which is the start of the New York session. This is because most forex brokers use EST as their reference time zone. However, this does not mean that all trading activities come to a halt at this time. Trading activities continue in other parts of the world, and traders need to be aware of this to avoid missing out on profitable trading opportunities.
Factors that affect when a day starts in forex
There are several factors that can affect when a day starts in forex. These factors include:
1. Time zones: The forex market operates in different time zones around the world, and each time zone has its own opening and closing times. Traders need to be aware of these times to know when a new trading day starts.
2. Holidays: The forex market is closed on certain holidays, such as Christmas and New Year’s Day. Trading activities may also slow down during other holidays, such as Easter and Thanksgiving. Traders need to be aware of these holidays to plan their trades accordingly.
3. Daylight saving time: Daylight saving time can affect the opening and closing times of the forex market. Traders need to be aware of when daylight saving time starts and ends in different parts of the world to adjust their trading schedules accordingly.
4. News events: Major news events, such as economic data releases and central bank announcements, can affect the forex market’s opening and closing times. Traders need to be aware of these events to plan their trades effectively.
Conclusion
In conclusion, a new trading day in forex typically starts at 5:00 PM EST, which is the start of the New York session. However, trading activities continue in other parts of the world, and traders need to be aware of the different time zones and trading sessions to plan their trades effectively. Additionally, factors such as holidays, daylight saving time, and news events can affect the opening and closing times of the forex market. Traders need to be aware of these factors to avoid missing out on profitable trading opportunities.
