Forex, also known as foreign exchange, is the largest and most liquid market in the world. It is where currencies are bought and sold, and it operates 24 hours a day, 5 days a week. But when exactly does forex start trading?
Forex trading starts on Sunday at 5 pm EST (Eastern Standard Time) and ends on Friday at 5 pm EST. This means that forex trading is open for 24 hours a day from Sunday evening to Friday evening.
However, it is important to note that not all forex markets are open at the same time. The forex market is divided into different trading sessions, each with its own opening and closing time. These sessions are based on the different time zones around the world.
The four major forex trading sessions are:
1. Sydney Session: This session starts at 5 pm EST on Sunday and ends at 2 am EST on Monday. The Sydney session is the first to open and is typically a quieter session, with lower volatility and liquidity.
2. Tokyo Session: The Tokyo session starts at 7 pm EST and ends at 4 am EST. This session is known for its high liquidity, thanks to the overlap with the Sydney session.
3. London Session: The London session starts at 3 am EST and ends at 12 pm EST. This is the most active session, with high liquidity and volatility.
4. New York Session: The New York session starts at 8 am EST and ends at 5 pm EST. This session is also highly active, with high liquidity and volatility.
It is important to note that there is some overlap between the sessions, which creates a period of high liquidity and volatility. For example, the Tokyo and London sessions overlap for a few hours, creating a period of high activity.
In addition to the four major trading sessions, there are also other minor trading sessions. These include the Wellington session, which overlaps with the Sydney session, and the Frankfurt session, which overlaps with the London session.
It is important to note that forex trading is not open on weekends. This is because most banks and financial institutions are closed on weekends, which means that there is little trading activity.
However, it is possible to trade forex over the weekend through the use of electronic trading platforms. These platforms allow traders to trade forex 24/7, even when the markets are closed.
In conclusion, forex trading starts on Sunday at 5 pm EST and ends on Friday at 5 pm EST. The forex market is divided into different trading sessions, each with its own opening and closing time. These sessions are based on the different time zones around the world. While forex trading is not open on weekends, it is possible to trade forex over the weekend through the use of electronic trading platforms.
