The Asian forex market is one of the most important trading centers of the world, accounting for nearly 37% of the total daily forex trading volume globally. The market is known for its high liquidity, low trading costs, and high volatility, making it an attractive place for traders from around the world. However, the market operates on a different time zone than other major forex trading centers, which can make it difficult for traders to know when to enter and exit trades. In this article, we will explain the opening hours of the Asian forex market and how it affects traders.
The Asian forex market is made up of several major financial centers, including Tokyo, Hong Kong, Shanghai, and Singapore. The market opens at different times in each of these centers, with Tokyo being the first to open. The Tokyo forex market opens at 9 pm GMT on Sunday and operates until 6 am GMT on Friday. This means that the Tokyo market is open for 17 hours a day, making it the longest-running forex market in the world. The Tokyo market is also the most active during the Asian trading session, accounting for nearly 20% of the total daily trading volume.
The Hong Kong and Shanghai markets open at 1 am GMT and 2 am GMT, respectively, and operate until 9 am GMT. These markets are relatively small compared to Tokyo but still account for a significant portion of the total daily trading volume. The Singapore forex market opens at 2 am GMT and operates until 9 am GMT, making it the second-longest-running forex market in the Asian session.
It is important to note that the opening times of the Asian forex markets can be affected by national holidays and other events. For example, the Chinese New Year holiday can cause the Shanghai market to close for several days, which can lead to lower liquidity and higher volatility in the Asian session.
Traders who are interested in trading the Asian forex market should be aware of the opening times of each financial center and adjust their trading strategy accordingly. For example, traders who are based in Europe or North America may find it difficult to trade the Tokyo market due to the time difference, but they can still take advantage of the Hong Kong and Singapore markets, which open later in the evening.
One of the advantages of trading the Asian forex market is the high volatility that is often present during the session. This can provide traders with opportunities to make quick profits if they are able to identify market trends and take advantage of them. However, traders should also be aware of the risks involved in trading during periods of high volatility, as prices can quickly move against them.
In conclusion, the Asian forex market is an important trading center that operates on a different time zone than other major forex markets. Traders who are interested in trading the Asian session should be aware of the opening times of each financial center and adjust their trading strategy accordingly. While the Asian market can provide traders with opportunities for high profits, it also carries a high degree of risk, and traders should exercise caution when trading during periods of high volatility.
