In forex trading, the concept of time is crucial. It is essential to know the opening and closing times of the forex market in different regions to maximize trading opportunities. One of the most common questions asked by forex traders is when does the week start in forex.
Unlike the stock market, forex trading is a 24-hour market that operates from Sunday at 5 pm Eastern Standard Time (EST) until Friday at 5 pm EST. However, this does not mean that the forex market is open for trading for seven consecutive days. The forex market operates in different time zones, and the week starts and ends differently in various regions.
The forex market is divided into three major trading sessions: the Asian session, the European session, and the US session. Each of these sessions has different trading hours, and the week in forex starts with the Asian session.
The Asian session starts on Sunday at 5 pm EST and ends on Monday at 4 am EST. This session is the least volatile of the three sessions and is primarily dominated by the Japanese Yen, the Australian Dollar, and the New Zealand Dollar. The Asian session is also known as the Tokyo session, as the Tokyo Stock Exchange is the largest stock exchange in the Asian region.
The European session starts on Monday at 3 am EST and ends on Friday at 11 am EST. This session is the most volatile of the three sessions, and it is during this session that most trading activity takes place. The European session is dominated by the Euro, the British Pound, and the Swiss Franc. London, being the financial hub of Europe, is the largest forex trading center in the world, and most of the major forex brokers have their headquarters in London.
The US session starts on Monday at 8 am EST and ends on Friday at 5 pm EST. This session is the second most volatile of the three sessions and is dominated by the US Dollar. The US session is also known as the New York session, and it is during this session that the US stock market opens, leading to increased volatility in the forex market.
Although the forex market operates 24 hours a day, it is essential to note that not all trading sessions are created equal. The best time to trade forex is during the overlap of two trading sessions when there is increased liquidity and volatility. The overlap between the European and US session, from 8 am EST to 11 am EST, is the most active time in the forex market.
In conclusion, the week in forex starts with the Asian session on Sunday at 5 pm EST and ends with the US session on Friday at 5 pm EST. It is important to note that the forex market operates in different time zones, and the three major trading sessions have different trading hours. The European session is the most volatile of the three sessions, and it is during this session that most trading activity takes place. The best time to trade forex is during the overlap of two trading sessions when there is increased liquidity and volatility. Understanding the time zones and trading sessions in the forex market is crucial in maximizing trading opportunities and profits.
