Forex trading is a global market that operates 24 hours a day, five days a week. As a result, traders can access the market at any time of the day from anywhere in the world. However, it is important to understand when the new forex day starts, as it can affect the pricing of currency pairs and the trading strategies that traders use.
The forex market operates on a 24-hour basis, starting on Sunday at 5:00 pm EST and closing on Friday at 5:00 pm EST. During this time, the market is continuously active and traders can buy and sell currencies at any time. However, the start of the new forex day is not necessarily at midnight, as many traders may assume.
The start of the new forex day is determined by the location of the major financial centers around the world. These financial centers include Tokyo, London, and New York, which are the largest and most influential financial markets in the world. Each of these financial centers has its own opening and closing times, which determine the start and end of the trading day.
The forex day starts with the opening of the Tokyo market at 7:00 pm EST. The Tokyo market is the first major financial center to open after the weekend, and it sets the tone for the rest of the day. The Tokyo market is known for its liquidity and volatility, as it is the largest market in Asia and is heavily influenced by the Japanese economy.
After the Tokyo market, the next major financial center to open is London at 3:00 am EST. The London market is the largest forex market in the world, accounting for over 30% of the total daily volume. The opening of the London market is a significant event for forex traders, as it is the time when the most liquidity and volatility are present in the market.
Finally, the New York market opens at 8:00 am EST. The New York market is the largest financial market in the world, accounting for over 20% of the total daily volume. The opening of the New York market is an important event for forex traders, as it is the time when the most liquidity and volatility are present in the market.
Traders should be aware of the opening and closing times of each financial center, as it can affect the pricing of currency pairs and the trading strategies that traders use. For example, when the London market opens, there may be a sudden increase in volatility and liquidity, which can lead to large price movements in currency pairs. Traders may use this information to adjust their trading strategies and take advantage of the market conditions.
In conclusion, the new forex day starts with the opening of the Tokyo market at 7:00 pm EST, followed by the London market at 3:00 am EST, and finally the New York market at 8:00 am EST. Traders should be aware of these opening and closing times, as it can affect the pricing of currency pairs and the trading strategies that traders use. By understanding the start of the new forex day, traders can make informed decisions and take advantage of the market conditions to maximize their profits.
