Since the Forex market operates 24 hours a day, we cannot say for sure that the market opens or closes at a certain time of the day. Unlike the stock and futures markets, there is no "first call" in it.
Since we will be working with charts that require an opening price and a closing price, currency traders should set a certain time of day for trading as a reference point.
For most traders, the trading day on the Forex market begins at 5: 00 pm New York time, or at 10: 00 pm London time. Since the Forex market is open 24 hours a day, the trading day also ends at 5: 00 pm New York time, or at 10: 00 pm London time.
Why is this particular time used? Keep in mind that when it's 5:00 pm on Sunday in New York, it's Monday morning in Australia and New Zealand at this time.
According to the International Date Change Line, Monday morning meets, first of all, this part of the globe, and then the rest. Thus, this time is considered the beginning of the trading day. At this time of the day, the volume is generally low, because the three largest trading centers on the Forex market-the United Kingdom, the United States and Japan – are inactive at this time. Nevertheless, in these few hours, you can see some activity of the Australian dollar and the New Zealand dollar.
Forex Market Sessions
- Asian session < / li>
- European session < / li>
- American session < / li> < / ul>