24-Hour Forex Trading
What are the main Forex trading hours and when is the best time to trade the Forex market? The heaviest volume of trades occurs when major financial markets overlap, offering good Forex trading opportunities.
Open a Forex account and enjoy a 24-hour Forex Trading experience. Currencies are traded 24 hours a day, from Sunday afternoon EST* (Eastern Standard Time) to Friday afternoon EST. Through this 5+ day week of market activity there is always at leastone financial center open for business. Indeed, as some markets close for the night, others open somewhere else. Since Forex trading hours overlap, currencies are being traded continuously. In other words, Forex almost never stops.
Traders new to the world of foreign exchange tend to think that since the market is open 24 hours a day, they may trade whenever they choose during the day. Although this is true, it requires some clarification. When it comes to Forex trading, some hours present better opportunities than others. By better opportunities we mean potentially greater profit.
What are the most suitable Forex trading hours and why?
Usually, the best time to enter Forex markets is when large volumes of currencies are being traded. At those hours, traders can take full advantage of Forex benefits. Since the Forex market trades 24 hours a day, the best time to enter is when several countries are trading at the same time. In each time zone across the world, Forex markets operate from 8am to 4pm. So, to take advantage of heavy trading volume, its worthwhile to determine when Forex market hours in different countries overlap. The more countries actively trading, the larger the trading volume and the bigger the pip movements. When currencies are the most active, that’s when traders have a better chance of making a profit. Slow markets offer little chance of profit and therefore Forex traders usually stay away.
Worldwide Forex Trading Hours:
Forex trading opens in New Zealand, followed by Australia, Asia (and particularly Japan), the Middle East, Europe (with London being the main financial center) and America.
Forex Trading Hours (EST):
Australia: 5pm - 1am
Tokyo: 7pm - 3am
Singapore/Hong Kong: 9pm - 5am
Frankfurt: 2am - 10am
London: 3am - 11am
As you can see,at around 5am trading stops in Asia while in Europe, the market is at its busiest time.
On the other side of the Atlantic, trading in the US kicks off in New York at 8am while the European market is winding to a close for the day. Soon afterwards, Australia is waking up again and Sydney is completing one full trading day.
To see when markets overlap, let's have a look at the different Forex trading times in each main financial center across the globe. (Times displayed are based on the EST)
Here are the times when two trading sessions overlap:
New York and London: from 8am to 12am (EST)
Sydney and Tokyo: from 7pm to 2am
London and Tokyo markets overlap one hour, from 3am to 4am
What does this mean?
Trading EUR/USD, GBP/USD, or USD/CHF between 8am and 12am are you sure because it doesn’t make sense (EST) can lead to good results since markets for those currencies (European and American) are both active at the same time. This is when the largest volume of trades occurs, creating a greater chance of making significant profit in the Forex market.
Another good time to trade is from 1am to 3am EST. As you can see in the table above, at that time, European markets are waking up while Asian markets are closing, offering good trade opportunities. The same goes for the 7pm to 10pm EST time period, when the Asian and Australian markets overlap.
Also, you have probably noticed that from 4pm to 6pm EST, there is no important overlap. That’s when the US markets close without overlapping with any other large market. At those hours, the volume of trades is much lower, offering less great trade opportunities.
You can thus see that while you can take advantage of a 24hr Forex Trading experience, some hours will allow for better opportunities than others.
*EST = UTC** - 5 hours
**UTC= Coordinated Universal Time
While some hours of the day are busier than others, meaning that Forex trading activity is greater at those hours, price fluctuation varies from day-to-day. As a general rule, some days of the week are busier than others. Whether in London, Tokyo, or the US, pip range movements for all four majors tend to be greater towards the middle of the week. Generally speaking, Tuesday and Wednesday Forex Trading Sessions have the widest pip variation for all majors.
|Current world market times|
|Los Angeles||10:44:28 pm|
|New York||01:44:28 am|
|Hong Kong||02:44:28 pm|