The forex market is the largest financial market in the world, with a daily turnover of over $5 trillion. It is an international market where currencies are traded 24 hours a day, five days a week. The forex market operates across different time zones, and it is important to understand when it opens and closes to make informed trading decisions. In this article, we will explore when the forex market starts and how it operates.
Forex trading sessions
Forex trading takes place across four major trading sessions: the Asian session, the European session, the North American session, and the Pacific session. Each session has its own characteristics and trading patterns, and traders can take advantage of these fluctuations to make profits.
1. Asian session
The Asian session is the first trading session of the day, and it starts at 9:00 PM GMT (4:00 PM EST) and ends at 6:00 AM GMT (1:00 AM EST). This session covers the markets of Japan, China, Australia, and New Zealand. The Asian session is known for its low volatility and limited trading opportunities. However, it is an important session for traders who trade the yen, as the Japanese yen is one of the most traded currencies in the world.
2. European session
The European session is the most active trading session, and it starts at 7:00 AM GMT (2:00 AM EST) and ends at 4:00 PM GMT (11:00 AM EST). This session covers the markets of London, Frankfurt, Zurich, and Paris. The European session is characterized by high volatility and liquidity, and traders can take advantage of the large price movements. The euro is the most traded currency during this session, followed by the British pound.
3. North American session
The North American session starts at 12:00 PM GMT (7:00 AM EST) and ends at 9:00 PM GMT (4:00 PM EST). This session covers the markets of New York, Toronto, and Chicago. The North American session is also characterized by high volatility and liquidity, and traders can take advantage of the large price movements. The US dollar is the most traded currency during this session.
4. Pacific session
The Pacific session is the last trading session of the day, and it starts at 10:00 PM GMT (5:00 PM EST) and ends at 7:00 AM GMT (2:00 AM EST). This session covers the markets of Sydney and Tokyo. The Pacific session is characterized by low volatility and limited trading opportunities. However, it is an important session for traders who trade the Australian dollar and the Japanese yen.
Weekend trading
The forex market is closed on weekends, but some brokers offer weekend trading. Weekend trading allows traders to trade currency pairs when the market is closed. Weekend trading is not as liquid as weekday trading, and the spreads are wider. However, it can be a useful tool for traders who want to hedge their positions or take advantage of news events that occur over the weekend.
The forex market starts on Sunday at 5:00 PM EST (10:00 PM GMT) with the opening of the Sydney session. The market then moves to Tokyo, London, and finally to New York, where it closes on Friday at 5:00 PM EST (10:00 PM GMT). The forex market operates 24 hours a day, five days a week, and traders can trade at any time during this period.
Conclusion
The forex market is a global market that operates across different time zones. Traders need to understand when the market opens and closes to make informed trading decisions. The forex market operates across four major trading sessions: the Asian session, the European session, the North American session, and the Pacific session. Each session has its own characteristics and trading patterns, and traders can take advantage of these fluctuations to make profits. The forex market starts on Sunday at 5:00 PM EST (10:00 PM GMT) and closes on Friday at 5:00 PM EST (10:00 PM GMT).
