The forex market is open 24 hours a day, five days a week, starting from Sunday at 10:00 PM GMT (5:00 PM ET) with the opening of the Asian session, until Friday at 10:00 PM GMT (5:00 PM ET) with the closing of the New York session. However, it’s important to note that certain sessions and currency pairs are more active and offer better trading opportunities during specific times. Here is a breakdown of the major forex trading sessions:
- Asian Session: The Asian session starts on Sunday evening (GMT) and is characterized by relatively lower volatility compared to other sessions. The major financial centers in this session include Tokyo, Singapore, and Hong Kong.
- European Session: The European session begins at 8:00 AM GMT and is regarded as the most active session with high liquidity. It is dominated by financial centers such as London, Frankfurt, and Zurich.
- North American Session: The North American session, also known as the New York session, starts at 1:00 PM GMT. This session overlaps with the end of the European session and is considered another highly active time for trading. The major financial centers in this session include New York, Toronto, and Chicago.
During the overlap periods, when two sessions are open simultaneously, trading activity and volatility tend to increase. The most notable overlap is between the European and North American sessions, from 1:00 PM GMT to 4:00 PM GMT, which is often referred to as the “power hours.”
It’s worth noting that while the forex market is open throughout the week, trading volumes and volatility can vary during different times of the day. Traders often consider the market hours and session overlaps when planning their trading strategies and choosing currency pairs to trade.
Additionally, it’s important to be aware of any adjustments to forex market hours due to public holidays or daylight saving time changes, as these can impact trading activity and liquidity. Traders can check their broker’s platform or refer to economic calendars to stay informed about any upcoming changes in trading hours.
Overall, forex traders can participate in the market at any time during the week, but the most active and potentially lucrative trading opportunities are often found when major sessions overlap.