If you’re interested in trading forex, knowing when the markets are open is important.
The forex market is open 24 hours a day during the week, but different regions have different trading hours.
This guide will provide all the information you need about forex market hours, including the best times to trade and the different trading sessions.
What Does a Forex Trading Hour Mean?
Forex market hour refers to the exact time that a trader can buy or sell a currency in the forex market.
The forex market has no central market, as traders buy and sell only at favorable market conditions.
Also, one of the reasons why the forex market is always active for 24 hours is because of the different time zones around the globe.
Forex trading involves parties such as international commercial banks, central banks, and retail traders.
This market opens by 5 pm Eastern Standard Time(EST) on Sunday and closes by 5 pm EST on Friday.
In addition, the currencies that traders trade the most include the Euro, the United States Dollar, the Japanese Yen, the Canadian Dollar, the British Pound, and the New Zealand Dollar.
This explanation should already provide a piece of information on the topic “What time do forex markets open.”
Now, let us check what the major trading sessions are.
Major Forex Market Sessions And The Time They Open.
Just like I said earlier, the forex market has favorable trading sessions. These are the sessions in which traders buy and sell certain currencies to make good profits.
However, during these sessions, the spread becomes tighter(the asking price and bid price become closer), and retail traders make more profit.
The busiest periods during these sessions are between the beginning and the end of each session.
The Four Sessions in GMT:
Here are the four major forex trading sessions listed in GMT (Greenwich Mean Time):
- Sydney Session: This session starts at 22:00 GMT and ends at 7:00 GMT.
- Tokyo Session: The Tokyo session begins at 00:00 GMT and ends at 9:00 GMT.
- London Session: The London session starts at 8:00 GMT and ends at 17:00 GMT.
- New York Session: The New York session begins at 13:00 GMT and ends at 22:00 GMT.
Please note that these times can vary slightly due to daylight saving time changes.
Forex Sessions in EST
- Sydney Session: The Sydney session starts at 5 PM EST and ends at 2 AM EST.
- Tokyo Session: The Tokyo session overlaps with the Sydney session, starting at 7 PM EST and ending at 4 AM EST.
- London Session: The London session is the most active, starting at 3 AM EST and ending at 12 PM EST.
- New York Session: The New York session overlaps with the London session, starting at 8 AM EST and ending at 5 PM EST.
Details About The Forex Market Sessions.
THE ASIAN SESSION.
During this session, traders often trade the JPY, NZD, AUD, and Singapore dollars.
The Asian session is not as liquid and volatile as other sessions.
Also, Japan is not the only country that trades during this session. Countries like New Zealand, Hong Kong, Russia, Singapore, and so on trade during this session too.
In addition, the session contributes about 17% of the total forex volume.
During this session, various economic data are released from Australia, New Zealand, and Japan. It is the earliest of all trading sessions.
THE EUROPEAN SESSION.
The European session takes over from the Asian session just to keep currency exchange going.
London is the forex capital of the world due to the large number of transactions that occur during this session.
However, aside from London, there are also financial centers in Europe in places such as Geneva, Frankfurt, Zurich, Amsterdam, and so on.
This session overlaps with the other two sessions. It is the most volatile and liquid trading session.
Traders trade currency pairs like EURUSD, GBPUSD, USDJPY, USDCHF, and so on mainly during this session.
THE AMERICAN SESSION.
The overlap of this session is the most liquid period of the day. Also, the beginning of this session is usually more volatile than the end.
This session favors almost every currency since 85% of all trades involve the United States Dollar.
Frequently Asked Questions(FAQS).
Forex markets typically open at 5 PM Eastern Time on Sundays.
Forex markets open at 5 PM Eastern Time on Sundays and operate 24 hours a day until 5 PM Eastern Time on Fridays.
Currency exchange markets operate around the clock but close at 5 PM Eastern Time on Fridays.
Forex markets close for the week at 5 PM Eastern Time on Fridays
The US Forex market (New York session) opens at 8 AM Eastern Standard Time.
CFD markets typically open alongside the underlying assets. Forex-based CFDs are available 24/5
In Nigeria, the Forex market opens at 10 PM on Sundays, local time.
In Singapore, the Forex market opens at 5 AM on Mondays, local time.
In Australia, the Forex market opens at 7 AM on Mondays in Sydney, local time.
In the UK, the Forex market opens at 10 PM on Sundays, local time
The Asian session in EST starts at 7 PM and ends at 4 AM
SUMMARY – When Does The Forex Market Open
The forex market is always available 24 hours, from Sunday evenings to Friday evenings.
However, during these periods, there are sessions when traders trade certain currencies to make better profits.
The sessions are the Asian session, the Sydney session, the European session, and the American session.
During the Asian sessions, traders trade the JPY, NZD, AUD, and Singapore Dollar more often. This session is the earliest of all sessions.
In the European session, the traders see the tightest spread. This session contributes about 43% of forex transactions.
In addition, the American session favors almost every currency pair since 85% of all trades involve the United States Dollar.
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