Trading in the foreign exchange (forex) market commences on Sundays at 5:00 PM EST with the opening of the Sydney market. This is when traders can begin placing orders for currencies, commodities, and other financial instruments. The forex market is open 24 hours a day, five days a week, making it one of the most accessible markets for investors and traders alike.
The forex market is open 24 hours a day from Sunday 5:00 PM EST to Friday 4:00 PM EST. During this time, trading takes place in all major financial centers around the world including London, New York, Tokyo, Zurich, Frankfurt, Hong Kong and Singapore. This allows traders to take advantage of opportunities that may arise during different trading sessions throughout the day and night.
It’s important to note that while trading begins at 5:00 PM EST on Sunday evening in Sydney (or 8:00 AM AEST), liquidity tends to be thin during this time due to lower volumes as many traders are not yet active in the markets. As such, spreads tend to be wider than usual which means that it may cost more to enter or exit trades during this period compared with other times of day when liquidity is higher.
As more financial centers come online throughout Sunday evening and into Monday morning (Sydney-Tokyo-London-New York), liquidity increases significantly which helps narrow spreads allowing for tighter entry/exit points for trades. This increase in liquidity continues until 4:00 PM EST on Friday when New York closes its doors for business until Sunday evening when it all starts again at 5:00 PM EST in Sydney.
In conclusion, trading begins at 5:00 PM EST on Sundays with the opening of the Sydney session but due to low volumes at this time spreads tend to be wider than usual so it may cost more money to enter or exit trades compared with other times during the week when liquidity is higher and spreads are narrower.