The forex market, also known as the foreign exchange market or FX market, is a worldwide decentralized market where currencies are traded 24 hours a day, 5 days a week. Due to its global nature, the forex market is open at different times around the world. In this article, we will explore when the forex market opens in Eastern Standard Time (EST).
The forex market operates on a continuous basis from Sunday at 5 pm EST to Friday at 5 pm EST. However, this does not mean that the market is always active during these hours. The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session.
The Sydney session opens at 5 pm EST on Sunday and closes at 2 am EST on Monday. During this session, the Australian and New Zealand markets are open, and these are some of the smallest markets in terms of trading volume. As a result, the Sydney session is known for its low volatility.
The Tokyo session opens at 7 pm EST and closes at 4 am EST. This session is also known as the Asian session and is characterized by the presence of the Japanese market. The Japanese yen is the third most traded currency in the world, and the Tokyo session is known for its high volatility.
The London session opens at 3 am EST and closes at 12 pm EST. This session is the most active and liquid session, with the most significant trading volume. The London session is also known for its high volatility, and it is during this session that most of the major currency pairs are traded.
The New York session opens at 8 am EST and closes at 5 pm EST. This session is also known as the North American session and is characterized by the presence of the US market. The US dollar is the most traded currency in the world, and the New York session is known for its high volatility.
It is important to note that the forex market is open 24 hours a day, but not all currency pairs are active or liquid during all sessions. For example, during the Sydney session, the Australian and New Zealand dollars are the most active currencies, while during the London session, the euro and the British pound are the most active currencies.
In addition, there are times during the day when two sessions overlap, which can result in higher volatility and increased trading volume. The most significant overlap occurs between the London and New York sessions, which is from 8 am EST to 12 pm EST. During this time, the market is the most active, and traders can take advantage of increased trading opportunities.
In conclusion, the forex market is open 24 hours a day, 5 days a week, but the trading activity and volatility vary depending on the session. Traders should pay attention to the opening and closing times of different sessions and the overlap between sessions to take advantage of the most significant trading opportunities.
