Forex market or foreign exchange market is the largest financial market in the world, with an average daily trading volume of over $5 trillion. It is a decentralized market where currencies are traded 24/7, five days a week, across different time zones. As a result, traders can trade currencies at any time of the day, but there are specific trading hours when the market is most active. So, which forex market opens first?
The forex market is divided into three major trading sessions: the Asian, European, and North American sessions. These sessions overlap, and the market is open 24 hours a day from Monday to Friday. But each session has its own opening and closing time, and the trading volume varies during each session.
The Asian session is the first to open, and it is often referred to as the Tokyo session. It starts at 11:00 PM GMT on Sunday and ends at 8:00 AM GMT on Monday. This session is the least volatile of the three sessions, and it is characterized by low trading volume. The Asian session includes markets in Japan, China, Singapore, and Australia, among others. The most traded currency pairs during the Asian session are USD/JPY, AUD/USD, and NZD/USD.
The European session is the second to open and is often referred to as the London session. It starts at 7:00 AM GMT and ends at 4:00 PM GMT. This session is the most volatile and active of the three sessions, and it is responsible for the majority of the forex market’s daily trading volume. The European session includes markets in London, Frankfurt, Paris, and Zurich, among others. The most traded currency pairs during the European session are EUR/USD, GBP/USD, and USD/CHF.
The North American session is the last to open and is often referred to as the New York session. It starts at 12:00 PM GMT and ends at 9:00 PM GMT. This session is less volatile than the European session but more volatile than the Asian session. The North American session includes markets in New York, Chicago, and Toronto, among others. The most traded currency pairs during the North American session are USD/CAD, USD/JPY, and USD/CHF.
In conclusion, the Asian session is the first forex market to open, followed by the European session and the North American session. The opening of each session presents opportunities for traders to enter the market and take advantage of the volatility and trading volume. However, it is important to note that the forex market is open 24/7, and traders can trade currencies at any time of the day. Therefore, traders should consider their trading strategy, time zone, and market conditions before deciding on the best session to trade.
