MCQs on Forex Market Hours
1. What is the primary reason the Forex market operates 24 hours?
A) Different time zones around the world
B) To avoid government regulation
C) To cater to stock market hours
D) To increase interest rates
Answer: A) Different time zones around the world
2. Which of the following is a major Forex trading session?
A) Sydney Session
B) Tokyo Session
C) London Session
D) All of the above
Answer: D) All of the above
3. What time does the Forex market open on Sunday?
A) 5 PM EST
B) 8 AM EST
C) 12 AM EST
D) 10 PM EST
Answer: A) 5 PM EST
4. Which Forex session is known for the highest trading volume?
A) Sydney Session
B) Tokyo Session
C) London Session
D) New York Session
Answer: C) London Session
5. When does the New York trading session start?
A) 8 AM EST
B) 9 AM EST
C) 10 AM EST
D) 11 AM EST
Answer: B) 9 AM EST
6. What is the best time to trade major currency pairs for maximum volatility?
A) During the Tokyo session
B) When the London and New York sessions overlap
C) At the opening of the Sydney session
D) During the weekend
Answer: B) When the London and New York sessions overlap
7. How many major Forex trading sessions are there in a day?
A) 2
B) 3
C) 4
D) 5
Answer: C) 4
8. Which trading session is considered the least active?
A) London Session
B) New York Session
C) Sydney Session
D) Tokyo Session
Answer: C) Sydney Session
9. Why is it important for traders to know Forex market hours?
A) To understand when to sleep
B) To determine when to trade for better opportunities
C) To manage their taxes
D) To meet with other traders
Answer: B) To determine when to trade for better opportunities
10. How does daylight saving time affect Forex market hours?
A) It does not affect Forex market hours
B) It shifts the opening and closing times of the market
C) It closes the market for one hour
D) It increases trading volume
Answer: B) It shifts the opening and closing times of the market
11. Which session usually has the least amount of news releases?
A) New York Session
B) Tokyo Session
C) London Session
D) Sydney Session
Answer: B) Tokyo Session
12. What is the overlap period between the London and New York sessions?
A) 1 AM to 3 AM EST
B) 8 AM to 12 PM EST
C) 12 PM to 4 PM EST
D) 9 AM to 12 PM EST
Answer: D) 9 AM to 12 PM EST
13. Which major currency pairs are most active during the London session?
A) USD/JPY
B) GBP/USD
C) EUR/USD
D) Both B and C
Answer: D) Both B and C
14. How can trading volume affect Forex market hours?
A) Higher trading volume can lead to more volatility
B) It has no effect on the market
C) Lower trading volume increases prices
D) Trading volume only affects stocks
Answer: A) Higher trading volume can lead to more volatility
15. Why might a trader choose to trade during the Asian session?
A) For higher volatility
B) For lower spreads
C) To follow economic news from Asia
D) All of the above
Answer: B) For lower spreads
