Forex or foreign exchange market is the largest financial market globally, with a daily trading volume of over $5 trillion. The forex market is open 24 hours a day, five days a week, from Monday to Friday. However, the market hours vary between regions and countries, and it is essential to know when the forex market opens and closes to make informed trading decisions.
The forex market is open for trading from Sunday evening to Friday afternoon, with a gap of only one hour on Friday afternoon. The market hours are divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its unique characteristics and trading volume, and traders need to understand the market dynamics during each session to maximize their profits.
The Sydney session opens at 10 pm GMT on Sunday and closes at 7 am GMT on Monday. This session is relatively quiet compared to other sessions, and the trading volume is low. However, it is essential to note that the Sydney session sets the tone for the rest of the week as it is the first to open after the weekend.
The Tokyo session opens at 12 am GMT and closes at 9 am GMT. This session is also known as the Asian session and is characterized by high volatility in the currency pairs involving the Japanese yen. The trading volume during this session is relatively high, and traders focus on the yen crosses, such as USD/JPY, EUR/JPY, and GBP/JPY.
The London session opens at 8 am GMT and closes at 5 pm GMT. This session is considered the most active session, with high trading volume and volatility. The London session overlaps with the Tokyo session for a few hours, creating a period of high liquidity in the market. Traders focus on the major currency pairs, such as EUR/USD, GBP/USD, and USD/CHF, during this session.
The New York session opens at 1 pm GMT and closes at 10 pm GMT. This session overlaps with the London session for a few hours, creating a period of high liquidity in the market. The New York session is characterized by high volatility, and traders focus on the USD crosses, such as EUR/USD, GBP/USD, and USD/JPY.
It is essential to note that the market hours vary depending on the daylight saving time (DST) observed in different regions and countries. Traders need to keep track of the DST changes as it affects the market hours and trading volume. During the DST period, the market hours shift by one hour, and the trading sessions start and end one hour earlier.
In conclusion, the forex market is open 24 hours a day, five days a week, from Monday to Friday. The market hours vary between regions and countries, and traders need to understand the market dynamics during each session to make informed trading decisions. The Sydney session sets the tone for the rest of the week, the Tokyo session is characterized by high volatility in the yen crosses, the London session is the most active session, and the New York session is characterized by high volatility in the USD crosses. Traders need to keep track of the DST changes as it affects the market hours and trading volume.
