Forex trading is a global market that operates 24 hours a day, five days a week. However, the market is not open all the time as it closes on weekends and various holidays. The forex market is divided into four major trading sessions: the Asian session, European session, North American session, and the Pacific session. Among these, the Asian session is the first to open, and it is considered the most active trading session.
The Asian forex market starts with the opening of the Tokyo Stock Exchange at 7 AM Tokyo time (23:00 GMT) and ends at 4 PM Tokyo time (8:00 GMT). This trading session is also known as the Tokyo session, and it accounts for around 21% of the total forex trading volume. However, the Asian session is not limited to Tokyo trading hours as it includes other major financial centers such as Hong Kong, Singapore, and Sydney.
Hong Kong is the second-largest financial center in Asia and home to the Hong Kong Stock Exchange. The forex trading in Hong Kong starts at 9 AM local time (1:00 GMT) and ends at 4 PM local time (8:00 GMT). The Hong Kong market accounts for around 7% of the total forex trading volume.
Singapore is another significant financial center in Asia, and it is the third-largest forex trading center in the world. The forex trading in Singapore starts at 9 AM local time (1:00 GMT) and ends at 5 PM local time (9:00 GMT). The Singapore market accounts for around 5% of the total forex trading volume.
Sydney is the first major financial center to open after the weekend and is considered the gateway to the Asian trading session. The forex trading in Sydney starts at 8 AM local time (22:00 GMT) and ends at 5 PM local time (7:00 GMT). The Sydney market accounts for around 4% of the total forex trading volume.
Apart from these major financial centers, the Asian forex market also includes other minor financial centers such as Shanghai, Seoul, and Taipei. However, their participation in the forex market is relatively low compared to the major financial centers.
The Asian forex market is unique in many ways. It is known for its high liquidity and volatility, which makes it an attractive market for traders. The market is influenced by various economic events such as interest rate decisions, GDP reports, and trade balance data. However, the Asian market is also affected by the trading sessions that come before it.
For example, the Asian forex market is influenced by the closing of the European session, which takes place at 5 PM GMT. The European session is known for its high volatility, and its impact can be seen in the Asian session. Traders must take this into consideration when trading in the Asian market.
In conclusion, the Asian forex market starts with the opening of the Tokyo Stock Exchange and includes other major financial centers such as Hong Kong, Singapore, and Sydney. The Asian session is known for its high liquidity and volatility and accounts for around 21% of the total forex trading volume. Traders must take into account the economic events and the trading sessions that come before the Asian market to make informed trading decisions.
