The foreign exchange (forex) market operates 24 hours a day, five days a week, from Sunday evening (Eastern Time) to Friday evening (Eastern Time). However, trading activity and liquidity levels can vary depending on the time of day and the specific forex market session.
Here are the main forex market sessions and their corresponding hours in Eastern Time:
- New York Session: This session is the most active and liquid, as it overlaps with the European session. It starts at 8:00 AM and ends at 5:00 PM.
- London Session: This session is also highly active and overlaps with the New York session, resulting in high trading volume. It starts at 3:00 AM and ends at 12:00 PM.
- Tokyo Session: This session is less active compared to the New York and London sessions, as it operates during the Asian market hours. It starts at 7:00 PM (previous day) and ends at 4:00 AM.
- Sydney Session: This session is the least active and is known for its lower trading volume. It starts at 5:00 PM (previous day) and ends at 2:00 AM.
It’s important to note that forex trading can still occur outside of these main sessions, but liquidity may be lower, resulting in wider spreads and higher volatility. Traders should also be aware of any daylight saving time changes that may affect the forex market hours in different regions.
What’s the best session to trade?
The best session to trade forex depends on various factors, including your trading strategy, preferred currency pairs, and personal schedule. Some traders prefer the volatility and liquidity of the European session, while others find opportunities during the overlaps between sessions. It’s essential to consider your own trading preferences, market conditions, and any specific currency pairs you are interested in trading when determining the best session for you.
What’s the most traded session?
The most traded session in the forex market is typically the European session, specifically the overlap between the European and US sessions. This overlap occurs for a few hours when both the London and New York markets are open simultaneously. This period is known for its high trading volumes, increased liquidity, and greater potential for price volatility.
Is the Forex market always open?
No, the forex market is not open all the time. While it operates 24 hours a day, it is open from Monday morning in the Asia-Pacific region until Friday evening in the New York session. The forex market follows a continuous 24-hour trading cycle, excluding weekends.
The market opens on Sunday evening (based on Eastern Standard Time) with the opening of the Asian session, specifically in Sydney. From there, the market moves through different trading sessions as major financial centers around the world open and close.
While the forex market is open 24 hours a day, not all trading sessions exhibit the same levels of activity and volatility. The trading volume and volatility tend to be higher during the overlaps between sessions, particularly during the European and US session overlap.