The forex market is a global market that operates 24 hours a day, 5 days a week. It is the largest financial market in the world, with an average daily trading volume of over $5 trillion. The forex market is decentralized, which means that it is not traded on a centralized exchange. Instead, it is traded over the counter (OTC) through a network of banks, brokers, and other financial institutions around the world.
The forex market is open 24 hours a day, but it does have trading hours that are more active than others. The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. These sessions are based on the time zones of the major financial centers around the world.
When it comes to the New York session, it is one of the most significant sessions in the forex market. It is the final session of the trading day, and it is when the majority of the trading activity takes place. The New York session opens at 8:00 AM EST and closes at 5:00 PM EST.
The New York session is characterized by high volatility and liquidity. This is because it overlaps with the London session, which is also a major financial center. The London session closes at 12:00 PM EST, and the New York session opens at 8:00 AM EST. This four-hour overlap is when the trading activity is at its highest.
During the New York session, the most traded currency pairs are the EUR/USD, USD/JPY, GBP/USD, USD/CHF, and AUD/USD. These currency pairs are the most liquid and have the tightest spreads, making them the most popular among traders.
The New York session is also when major news releases are announced. This includes economic data such as GDP, employment figures, inflation rates, and central bank interest rate decisions. These news releases can have a significant impact on the forex market, and traders need to be aware of them to make informed trading decisions.
In addition to the regular New York session, there is also an extended New York session. This session opens at 5:00 PM EST and closes at 6:00 PM EST. This session is also known as the after-hours trading session. It is not as active as the regular New York session, but it can still present trading opportunities for traders who prefer to trade during this time.
To summarize, the New York session is one of the most important sessions in the forex market. It opens at 8:00 AM EST and closes at 5:00 PM EST. During this time, the trading activity is at its highest, and major currency pairs such as the EUR/USD, USD/JPY, GBP/USD, USD/CHF, and AUD/USD are the most traded. Major news releases are also announced during this session, which can have a significant impact on the forex market. The extended New York session opens at 5:00 PM EST and closes at 6:00 PM EST and presents trading opportunities for traders who prefer to trade during this time.
