The foreign exchange market, commonly known as the forex market, is the largest and most liquid financial market in the world. It is a decentralized market where currencies are traded 24 hours a day, five days a week. However, the forex market does have specific opening and closing times, and the question of which forex market opens first is often asked by traders.
To answer this question, we need to understand the different forex markets and their opening times. There are three main forex markets: the Asian session, the European session, and the American session.
The Asian session is the first forex market to open. It begins at 9:00 PM GMT on Sunday and ends at 8:00 AM GMT on Monday. The Asian session is also known as the Tokyo session because it is centered around the trading activity in Tokyo, Japan. Other major financial centers in the Asian session include Hong Kong, Singapore, and Sydney.
During the Asian session, the major currency pairs that are traded include the USD/JPY, EUR/JPY, AUD/USD, and NZD/USD. The Asian session is known for its low volatility and low trading volumes compared to the other two forex sessions.
The European session is the second forex market to open. It begins at 7:00 AM GMT and ends at 4:00 PM GMT. The European session is also known as the London session because it is centered around the trading activity in London, England. Other major financial centers in the European session include Frankfurt, Zurich, and Paris.
During the European session, the major currency pairs that are traded include the EUR/USD, GBP/USD, and USD/CHF. The European session is known for its high volatility and high trading volumes because it overlaps with the Asian and American sessions.
The American session is the third forex market to open. It begins at 12:00 PM GMT and ends at 9:00 PM GMT. The American session is also known as the New York session because it is centered around the trading activity in New York, United States. Other major financial centers in the American session include Toronto and Chicago.
During the American session, the major currency pairs that are traded include the USD/CAD, USD/JPY, and EUR/USD. The American session is known for its high volatility and high trading volumes because it overlaps with the European session.
In conclusion, the forex market opens first in the Asian session, which begins at 9:00 PM GMT on Sunday. The Asian session is followed by the European session at 7:00 AM GMT and the American session at 12:00 PM GMT. Each session has its own characteristics and trading opportunities, and traders should consider these factors when planning their trading strategies.
