forex trading

What is The Best Forex Market Hour to Trade?

One of the most important advantages of forex market is that it works throughout the day in addition to being the largest and most liquid financial market in the world; it is available to all subscribers regardless of place and time.

This market never sleeps and provides traders with daily opportunities to trade around the clock.

Forex Market Key Principles

  • Trading volume differs from one session to another.
  • You can trade with Forex 24 hours a day except for weekends.
  • The biggest trading volume happens when New York and London session overlap.
  • The Forex market (add a link of the previous article) is driven by 4 local sessions (Sydney, Tokyo, London, and New York).

However, how does the currency market operate around the clock?

Let’s find out why.

Forex Market Opening Hours

More importantly, how long does the currency market remain open?

The currency market works around the clock, 5 days a week so that you can trade whenever you want, not when the market dictates you to do so. There is no specific time to open the market or to execute your order before the close.

When Forex Trading Session Starts and Ends?

Trading begins with the opening of the Sydney session and ends with the New York session, and then begins again, around the clock. This means that you can trade at any time according to your schedule; it may be morning, noon or night.

The Difference between Stock Market and Currency Market

There are some factors distinguish the currency market from the stock market and Make the Currency market (Forex) better.

Stock Market

Trading sessions in the stock market are limited to the working hours of the stock exchange, and usually coincide with the normal working hours, that is, from Monday to Friday.

For example, the New York Stock Exchange (NYSE) is open from 9:30 until 16:30 ET. You may be able to trade after business hours on some exchanges, but liquidity is usually much lower. Stock trading is limited to the stock exchange of your country or the country of your financial intermediary.

Currency Market

The currency market gives traders from anywhere in the world the flexibility to trade during the hours of the US, Asian and European market, and provides good liquidity for most of the day.

There are Good broker firms as Equiti gives you the opportunity to trade in this large decentralized market with access to the highest and most accurate liquidity and fast execution of transactions using ECN technology.

Forex Market Trading Sessions

How can the currency market operate around the clock? Trading sessions

Currencies aren’t traded in a specific central market, such as the stock exchange, but rather between participants through Electronic Communications Network technology (ECN) in various markets around the world.

Transactions are made via a global network that does not close at the end of the local workday, ensuring that you trade currencies in real global trading hours, as each major time cycle has its own regional cycle.

Forex trading hours are depending on when trading is available in each engaging country. While the time zones overlap, the completely approved time zone for each location are as the following:

The currency market can be divided into four main trading sessions: Sydney session, Tokyo session, London session and New York session.

  • London 3am to 12 noon EST (8pm to 5pm UTC).
  • Sydney 5pm to 2am EST (10pm to 7am UTC).
  • Tokyo 7pm to 4am EST (12am to 9am UTC).
  • New York 8am to 5pm EST (1pm to 10pm UTC)

The market begins operating with the Sydney session opening Monday at 7:00 am local time and ending with the New York session Friday at 5:00 pm local time. There is a certain period when two sessions open at the same time, and these times are usually the most intense during the day.

Currencies, unlike stocks and commodities, are a global necessity for banks, international trade and global business, and this requires a 24/7 market across different time zones to meet needs.

The global range of currency trading means that there are always people around the world trading a certain currency.

There are possibilities for currency trading during the week, but there are some days when currencies are more traded.

Trading starts daily with the opening of the Australian region, followed by Europe and North America.

What is The Best Forex Market Hours to Make Maximum Profits?

Once one session is over another begins, so the currency market operates non-stop. When these markets overlap for a few hours, the most active period in currency trading begins. Trading volume increases when two sessions overlap at the same time, and thus increases the chances for major deals. These times are:

  • New York and London: From 8:00 A.M to 12:00 P.M.
  • Tokyo and Sydney: From 7 P.M. to 2 A.M.
  • Tokyo and London: From 3 A.M. to 4 A.M.

For example, it is best to trade the EUR / USD or GBP / USD pairs during the overlap of the New York session with the London session as these two markets are active simultaneously.

There is a possibility that the currency market is open while you read this post. The flexibility of currency trading hours provides the best opportunities to trade in global markets, and you can try this by opening a free risk-free demo account.

Practice trading during different currency trading sessions to familiarize yourself with the markets, and do not hesitate to contact our customer support team in case you have any questions.

Bottom Line

One of the greatest characteristics of the foreign exchange market is that it is open 24 hours a day, as mentioned previously. This enables investors around the world to trade during normal business hours, after work, and even overnight. However, not all times are created completely equal.

There are times of forex trading around the world when price movements are constantly fluctuating, as well as periods when the market is completely silent.

Multiple currency pair’s show mixed activity during different times of the day thanks to the general demographic trading of market participants who are online at this particular time. This prompts us to accept major trading sessions in Forex as they are directly correlated with trading hours.

Although the 24-hour market offers a great advantage to many traders, individuals and institutions, it also guarantees liquidity and a strong opportunity to trade at any time during the forex hours established from trading, this is not deprived of some of the pitfalls.

Although there are different currencies that can be traded at any time, it is not possible for a trader to monitor the position and the deal for long periods of time. This means that there will be no foreign exchange trading times when opportunities are missed, or worse, when the market jumps with volatility. This immediately leads to a move against the position of a group of traders who are not close to the market until they fix it, and in order to limit this danger

The trader should be aware of when the market is usually more volatile and peak times that know many moves, and therefore decide what times are best to trade and include them in his strategy and trading method.

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