Forex trading is a 24-hour market that operates five days a week. The forex market opens on Sunday at 5:00 pm EST (10:00 pm GMT) and closes on Friday at 5:00 pm EST (10:00 pm GMT). However, the market does not operate continuously during this time. Instead, it operates in sessions that overlap each other, providing traders with the opportunity to trade around the clock.
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 unique characteristics and trading opportunities, and traders should be aware of the opening and closing times of each session to take full advantage of the market.
The Sydney Session
The Sydney session is the first session of the forex market and begins at 5:00 pm EST (10:00 pm GMT) on Sunday. The Sydney session is usually quiet and has low volatility as it overlaps with the end of the weekend in North America and Europe. The market is dominated by traders from Australia and New Zealand, and the session usually lasts until 2:00 am EST (7:00 am GMT).
The Tokyo Session
The Tokyo session begins at 7:00 pm EST (12:00 am GMT) and overlaps with the Sydney session for two hours until 9:00 pm EST (2:00 am GMT). The Tokyo session is the second-largest forex trading session, accounting for about 20% of the daily trading volume. The session is characterized by high volatility, especially during the first hour of trading when the market reacts to news and economic data from Japan and other Asian countries.
The London Session
The London session is the most active and important trading session in the forex market, accounting for about 35% of the daily trading volume. The session begins at 3:00 am EST (8:00 am GMT) and overlaps with the end of the Tokyo session for two hours until 5:00 am EST (10:00 am GMT). The London session is considered the most liquid session, as it involves the trading of major currencies such as the euro, pound, and Swiss franc.
The New York Session
The New York session is the last session of the forex market and begins at 8:00 am EST (1:00 pm GMT). The session overlaps with the end of the London session for two hours until 10:00 am EST (3:00 pm GMT). The New York session is the second-most active trading session, accounting for about 20% of the daily trading volume. The session is characterized by high volatility, especially during the first hour of trading when the market reacts to news and economic data from the United States and Canada.
Conclusion
In conclusion, the forex market operates in sessions that overlap each other, providing traders with the opportunity to trade around the clock. The market opens on Sunday at 5:00 pm EST (10:00 pm GMT) and closes on Friday at 5:00 pm EST (10:00 pm GMT). The four major trading sessions are the Sydney session, the Tokyo session, the London session, and the New York session, each with its own unique characteristics and trading opportunities. Traders should be aware of the opening and closing times of each session to take full advantage of the market.
