The forex market is a decentralized market that operates 24 hours a day, five days a week. As the largest financial market in the world, it is open for trading across different time zones, making it easier for traders to trade at their preferred time. The UK forex market is one of the major forex markets globally, and it is essential to know when it opens to plan your trading activities effectively.
The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session operates at different times, and traders can take advantage of the overlap between two sessions for increased trading opportunities.
The UK forex market opens at 8 am GMT, which is the start of the London session. The London session is the most active forex trading session, with over 30% of forex transactions taking place during this session. The London session is also known as the European session, and it overlaps with the end of the Asian session and the beginning of the New York session.
The Asian session starts at 11 pm GMT and lasts until 8 am GMT. The Asian session includes the markets in Japan, Australia, New Zealand, and China. The Tokyo session is the most active during the Asian session, and it accounts for 21% of all forex transactions. However, the Asian session is known to be less volatile compared to the London and New York sessions.
The New York session starts at 1 pm GMT and lasts until 10 pm GMT. The New York session is the second most active forex trading session, with over 19% of all forex transactions taking place during this session. The New York session overlaps with the end of the London session, providing traders with increased trading opportunities.
The forex market is open for trading from Sunday at 10 pm GMT, when the Sydney session starts, until Friday at 10 pm GMT, when the New York session ends. However, it is important to note that not all forex pairs are traded 24 hours a day. Some currency pairs have specific trading hours, and traders should be aware of these hours to avoid trading when the market is closed.
In addition to the regular trading hours, the UK forex market may also experience periods of increased volatility during economic events such as central bank meetings, GDP releases, and employment reports. Traders should be aware of these events and adjust their trading strategies accordingly.
In conclusion, the UK forex market opens at 8 am GMT, which is the start of the London session. The London session is the most active forex trading session, and it overlaps with the end of the Asian session and the beginning of the New York session. Traders should be aware of the trading hours of different currency pairs and economic events that may affect market volatility. By understanding the trading hours of the UK forex market, traders can plan their trading activities effectively and take advantage of increased trading opportunities.
