Curious about Forex Market Hours? Foreign Exchange Market is the largest and the most active. Unlike Stock Market that closes daily, Forex market closes weekly. This article will examine the Forex market hours, explain the timing of the sessions and provide forex trading tips based on the forex sessions overlap. Read below to find out the most prominent Forex market hours.
The Forex market hours are 24/5, open the weekdays but closed on the weekends. While it is 24/5, not every exchange hub works all 24 hours. The active hours change between locations. While the market hours continue over a 24 hour time period, from 10 p.m. GMT Sunday to 10 p.m. GMT Friday, the actual Forex trading hours vary. For New York, the time is 1 p.m. GMT to 10 p.m. GMT, while it is 12 p.m. GMT to 9 a.m. GMT for Tokyo.
Understanding these hours is critical. The changes between Forex trading sessions will determine the effectiveness and profitability of your trades. While you can trade at any time during open hours, you will not have the same experience or financial gain from all open hours. You want to choose volatile hours. Volatile hours are when certain sessions overlap, such as New York and London. During this time, there is a large amount of traders online and traders are more active. This is the best time to make a trade if you want to make the most out of this.
Forex Market Hours Schedule
The open hours, in GMT, are:
- London: 8 a.m. to 5 p.m.
- New York: 1 p.m. to 10 p.m.
- Sydney: 10 p.m. to 7 a.m.
- Tokyo: 12 p.m. to 9 a.m.
Should you be curious about EST times of the sessions – check this investopedia page. To make a better overview of the Forex market hours, let’s visualize with an example.
Forex Market Sessions Hours Map
These are some of the top trading markets in the world. When they cross, there is a lot of trading happening. The best is the beginning and end of London’s trading period. This is when the Forex trading hours are at their busiest. You have more prices, more people, and better options. Any time you have a cross between two major trading markets, you are going to have a better market.
The worst hours, on the other hand, are any solo hours. The final hours of certain markets, such as Chicago, will see a thinning crowd. Fewer prices, fewer people, means fewer options. You may not have the same opportunities that you had earlier in the day when major markets were active.
Best Time To Trade Forex Tips
Make sure to build a trading schedule around these times. Overlapping Forex trading sessions will give you a better trading experience. To see the biggest return on your investment, you are going to want the large crowds that you get at these hours. It is why most traders wait until the volatile, active hours to start their trades. It is the smart way to go.
Understanding Forex market hours is important for day traders, as these group of traders tries to squeeze the maximum from the market potential. Forex Bonus Lab recommends you keep an eye (or perhaps even print) the map of sessions’ overlap and strongly consider it in your trading strategy, since picking-up best time to trade Forex is one of the keys to success.
Like this article? Check out some more Forex Bonus Lab Trading Tips!