The foreign exchange market, commonly known as the forex market, is the largest financial market in the world. It operates 24 hours a day, five days a week, except for weekends and major holidays. In 2021, the forex market will open on January 3rd, which is a Sunday. The market will remain open until Friday, December 31st, 2021.
The forex market is decentralized, which means that it is not governed by any central authority or exchange. Instead, the market is made up of a network of banks, financial institutions, and individual traders who buy and sell currencies. The market operates on a 24-hour basis, with trading sessions starting in different parts of the world as the day progresses.
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 has its own unique characteristics, with different levels of liquidity and volatility. Traders need to be aware of the trading hours of each session to make informed trading decisions.
The Sydney session starts at 5 pm EST and ends at 2 am EST. It is the least volatile session, with low liquidity levels. The Tokyo session starts at 7 pm EST and ends at 4 am EST. It is the most active session in the Asian market, with high liquidity levels. The London session starts at 3 am EST and ends at 12 pm EST. It is the most active session in the European market, with high liquidity levels. The New York session starts at 8 am EST and ends at 5 pm EST. It is the most active session in the US market, with high liquidity levels.
The forex market is closed on weekends and major holidays, such as Christmas Day, New Year’s Day, and Thanksgiving Day. Traders need to be aware of these holidays to avoid trading when the market is closed. The market is also affected by important economic events, such as interest rate decisions, employment reports, and GDP releases. Traders need to be aware of these events to make informed trading decisions.
In conclusion, the forex market is a 24-hour market that operates five days a week, except for weekends and major holidays. The market is divided into four major trading sessions, each with its own unique characteristics. Traders need to be aware of the trading hours of each session to make informed trading decisions. The forex market is also affected by important economic events, and traders need to be aware of these events to make informed trading decisions.
