The forex market is one of the largest financial markets in the world, with a daily turnover of over $5 trillion. It is a global market that operates 24 hours a day, five days a week, and is accessible to traders from all over the world. Understanding when the forex market is open is crucial for traders, as it can impact their trading strategies and opportunities.
The forex market is open 24 hours a day, five days a week, from Sunday at 5 pm EST to Friday at 5 pm EST. However, this does not mean that the market is always active during these hours. The forex market is most active when there is an overlap of trading sessions, which occurs during the opening and closing hours of different markets.
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 its own opening and closing hours, which are influenced by daylight saving time changes and public holidays in different countries.
The Asian session starts in Sydney, Australia, and then moves to Tokyo, Japan. It opens on Sunday at 5 pm EST and closes on Friday at 4 pm EST. The Asian session is known to be the least volatile of the three sessions, with lower trading volumes compared to the European and US sessions.
The European session starts in Frankfurt, Germany, and then moves to London, England. It opens on Sunday at 5 pm EST and closes on Friday at 12 pm EST. The European session is the most active session, with the highest trading volumes and the most liquidity. This is because it overlaps with both the Asian and US sessions, providing traders with more opportunities to make trades.
The US session starts in New York, USA, and is the last trading session of the day. It opens on Sunday at 5 pm EST and closes on Friday at 5 pm EST. The US session is also highly active, with high trading volumes and liquidity. It overlaps with the European session, providing traders with more trading opportunities.
It is worth noting that there are also minor trading sessions that occur during the day, such as the Pacific and Wellington sessions. These sessions have lower trading volumes and are usually less volatile than the major trading sessions.
In conclusion, the forex market is open 24 hours a day, five days a week, from Sunday at 5 pm EST to Friday at 5 pm EST. However, the market is most active during the opening and closing hours of the major trading sessions, which are the Asian, European, and US sessions. Understanding when the forex market is open and when it is most active is crucial for traders to make informed trading decisions and take advantage of trading opportunities.
