The foreign exchange (forex) market is open 24 hours a day, five days a week, except for holidays. During the market hours, traders can buy, sell, exchange and speculate on currencies. This makes the forex market one of the most accessible financial markets in the world.
The forex market consists of four distinct trading sessions. These sessions are known as the Tokyo session, the London session, the New York session and the Sydney session. The session times reflect the locations of the major financial centers in each region.
The Tokyo session begins at 7:00 PM GMT and closes at 4:00 AM GMT. This session is when Japanese markets open, and it is the first session of the day to see significant trading volume. Major currency pairs that are traded in this session are the Japanese yen, the euro, and the British pound.
The London session then follows at 8:00 AM GMT and closes at 5:00 PM GMT. This session is when the London markets open, and it sees the highest trading volume out of all four sessions. Major currency pairs that are traded in this session are the euro, the British pound, the Swiss franc, and the US dollar.
The New York session follows at 1:00 PM GMT and closes at 10:00 PM GMT. This session is when US markets open, and it sees a significant amount of trading volume. Major currency pairs that are traded in this session are the US dollar, the euro, and the British pound.
Finally, the Sydney session follows at 10:00 PM GMT and closes at 7:00 AM GMT. This session is when the Australian markets open, and it is the last session of the day to see significant trading volume. Major currency pairs that are traded in this session are the Australian dollar, the US dollar, and the Japanese yen.
Overall, the forex market is open 24 hours a day from Sunday at 8:00 PM GMT to Friday at 10:00 PM GMT. The Tokyo, London, New York and Sydney sessions all open and close at different times, and the trading volume for each session varies depending on the currency pairs being traded. By understanding the different trading sessions and the currencies that are traded in each session, forex traders can better identify opportunities in the currency markets.
