Forex market is the largest financial market in the world, with an average daily turnover of around $5 trillion. It is open 24 hours a day, five days a week, which makes it a popular choice for traders around the world. However, knowing when the forex market opens and closes is essential for traders as it helps them plan their trades and manage their risk effectively.
The forex market is divided into four major trading sessions: Sydney, Tokyo, London, and New York. Each of these sessions has its unique characteristics and trading opportunities. The market opens on Sunday at 5:00 pm EST (Eastern Standard Time) and closes on Friday at 5:00 pm EST. Let’s take a closer look at each of these sessions and their opening times.
Sydney Session
The Sydney session is the first to open, and it starts at 5:00 pm EST on Sunday. It is the smallest of the four sessions, accounting for only 4% of the daily trading volume. However, it is still an important session as it sets the tone for the rest of the week. The Sydney session overlaps with the Tokyo session for a few hours, which can create some volatility in the market.
Tokyo Session
The Tokyo session starts at 7:00 pm EST and is the second largest trading session, accounting for around 21% of the daily trading volume. It is known for its volatility, with many traders looking for opportunities to profit from the market movements. The Tokyo session overlaps with the London session for a few hours, which is the most active trading session.
London Session
The London session is the most active trading session, accounting for around 35% of the daily trading volume. It starts at 3:00 am EST and overlaps with the Tokyo session for a few hours. The London session is known for its high liquidity, making it a popular choice for traders looking for opportunities to profit from the market movements.
New York Session
The New York session is the last to open, and it starts at 8:00 am EST. It is the second most active trading session, accounting for around 19% of the daily trading volume. The New York session overlaps with the London session for a few hours, which can create some volatility in the market. The New York session is known for its high liquidity and is popular among traders looking for opportunities to profit from the market movements.
In conclusion, knowing when the forex market opens and closes is essential for traders as it helps them plan their trades and manage their risk effectively. The forex market is open 24 hours a day, five days a week, with each session having its unique characteristics and trading opportunities. The Sydney session starts at 5:00 pm EST, followed by the Tokyo session at 7:00 pm EST, the London session at 3:00 am EST, and the New York session at 8:00 am EST. Traders should keep these opening times in mind when planning their trades and should always keep an eye on the market to take advantage of the opportunities it presents.
