Trading in the foreign exchange market, also known as forex, is a 24-hour global market where currencies are traded around the clock. Because of this, the forex market is divided into several trading sessions that overlap with each other, allowing traders to trade currencies at any time of day or night. In this article, we will take a closer look at the different forex market hours across various time zones around the world.
Asian Session
The Asian session is the first major trading session of the day and includes the markets in Tokyo, Hong Kong, Singapore, and Sydney. This session typically starts at 8:00 AM local time in Tokyo and overlaps with the European session in the late afternoon. The Asian session is known for its relatively low volatility and is often characterized by range-bound trading.
European Session
The European session is the most liquid trading session and includes the markets in London, Frankfurt, and Zurich. This session opens at 8:00 AM local time in London and overlaps with the Asian session in the early morning. The European session is known for its high volatility, especially during the overlap period with the Asian session.
American Session
The American session is the last major trading session of the day and includes the markets in New York, Chicago, and Toronto. This session opens at 8:00 AM local time in New York and overlaps with both the European and Asian sessions during the afternoon. The American session is known for its high volatility and is often the most active session for traders.
Trading Hours by Time Zone
Below is a breakdown of the forex market hours by major time zones:
- New York (Eastern Time): 8:00 AM – 5:00 PM
- London (Greenwich Mean Time): 8:00 AM – 4:00 PM
- Tokyo (Japan Time): 8:00 AM – 4:00 PM
- Sydney (Australian Eastern Time): 8:00 AM – 4:00 PM
- Zurich (Central European Time): 8:00 AM – 4:00 PM
FAQs
What is forex trading?
Forex trading is the buying and selling of currencies in the foreign exchange market. Traders speculate on the price movements of different currency pairs, with the goal of making a profit from fluctuations in exchange rates.
What are the major currency pairs traded in the forex market?
The major currency pairs traded in the forex market include EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, and AUD/USD. These currency pairs are the most liquid and widely traded in the market.
What is the best time to trade forex?
The best time to trade forex is during the overlap periods between different trading sessions when there is increased liquidity and volatility in the market. These overlap periods typically occur during the European and American sessions.
References
For further reading on forex trading and market hours, we recommend the following resources:
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