Forex, also known as foreign exchange, is a global decentralized market for the trading of currencies. It is the largest financial market in the world, with a daily turnover of over $5 trillion. The forex market is open 24 hours a day, five days a week, and operates across different time zones. However, not all trading sessions are created equal, and knowing when the forex market opens up for trade can be critical in making profitable trades.
The forex market is divided into three major trading sessions: the Asian session, the European session, and the US session. Each session has its own unique characteristics and trading opportunities.
The Asian session, also known as the Tokyo session, starts at 12:00 AM GMT and ends at 9:00 AM GMT. This session is dominated by the Japanese yen, and the major currency pairs traded during this session include USD/JPY, EUR/JPY, and AUD/JPY. The Asian session is known for its low volatility and range-bound trading. Traders should focus on trading the yen crosses and monitor the news releases from Japan, China, and Australia.
The European session, also known as the London session, starts at 8:00 AM GMT and ends at 5:00 PM GMT. This session is the most active and liquid of all sessions, with the majority of forex transactions taking place during this time. The major currency pairs traded during this session include EUR/USD, GBP/USD, and USD/CHF. The European session is known for its high volatility and trending markets. Traders should focus on trading the major currency pairs and monitor the news releases from Europe and the UK.
The US session, also known as the New York session, starts at 1:00 PM GMT and ends at 10:00 PM GMT. This session overlaps with the European session and is known for its high volatility and liquidity. The major currency pairs traded during this session include USD/CAD, USD/JPY, and EUR/USD. The US session is known for its trend reversals and breakouts. Traders should focus on trading the major currency pairs and monitor the news releases from the US and Canada.
It is important to note that the forex market doesn’t close during the weekends. However, trading volumes are significantly lower during this time, and the market is more susceptible to price gaps, spread widening, and slippage. The forex market is also closed during major holidays, such as Christmas and New Year’s Day.
In conclusion, the forex market is open 24 hours a day, five days a week. However, not all trading sessions are created equal, and knowing when the forex market opens up for trade can be critical in making profitable trades. Traders should focus on trading the major currency pairs during the most active and liquid trading sessions and monitor the news releases from the major economies. By understanding the characteristics of each trading session, traders can develop a trading plan that takes advantage of the unique opportunities and challenges presented by each session.
