Forex, or foreign exchange, is a global market where traders can buy and sell currencies from around the world. With 24-hour trading, the forex market is always open somewhere in the world. However, not all markets are open at the same time, so it’s important to know which markets are open now before you start trading.
The forex market is divided into three main trading sessions: the Asian session, the European session, and the North American session. Each session has its own unique characteristics, and traders can take advantage of the different market dynamics to make profits.
Asian Session
The Asian session is the first major trading session of the day and is sometimes called the Tokyo session. It starts at 11:00 PM GMT and ends at 8:00 AM GMT. The Asian session is known for its low volatility, and many traders use this time to analyze the market and plan their trades for the day ahead.
The most active currency pairs during the Asian session are the Japanese yen (JPY), Australian dollar (AUD), and New Zealand dollar (NZD). These pairs are heavily influenced by economic data from Japan, Australia, and New Zealand, respectively.
European Session
The European session is the second major trading session of the day and is sometimes called the London session. It starts at 7:00 AM GMT and ends at 4:00 PM GMT. The European session is known for its high volatility, and many traders prefer to trade during this time.
The most active currency pairs during the European session are the euro (EUR), British pound (GBP), and Swiss franc (CHF). These pairs are heavily influenced by economic data from the Eurozone, the UK, and Switzerland, respectively.
North American Session
The North American session is the third major trading session of the day and is sometimes called the New York session. It starts at 12:00 PM GMT and ends at 9:00 PM GMT. The North American session is known for its high volatility, and many traders prefer to trade during this time.
The most active currency pairs during the North American session are the US dollar (USD), Canadian dollar (CAD), and Mexican peso (MXN). These pairs are heavily influenced by economic data from the US, Canada, and Mexico, respectively.
Overlap Sessions
There are also two overlap sessions during the trading day when two major sessions are open at the same time. These overlap sessions are known for their high volatility and can present opportunities for traders to make profits.
The first overlap session is between the Asian and European sessions and occurs from 7:00 AM GMT to 8:00 AM GMT. The second overlap session is between the European and North American sessions and occurs from 12:00 PM GMT to 4:00 PM GMT.
During these overlap sessions, the most active currency pairs are the EUR/USD, GBP/USD, and USD/JPY. These pairs are heavily traded during these times due to the high volatility and increased trading volume.
Conclusion
In conclusion, the forex market is always open somewhere in the world, but not all markets are open at the same time. Traders need to know which markets are open now to take advantage of the different market dynamics and make profits. The Asian session is known for its low volatility, the European session is known for its high volatility, and the North American session is known for its high volatility. The overlap sessions between these major sessions are also known for their high volatility and can present opportunities for traders to make profits.
