Forex Market Hours And Trading Times
Is it necessary to know the proper Forex market hours and trading times for traders?
The answer is YES.
It is not only important to know, but also mandatory for being a profitable Forex trader. However, the market is open 24 hours, but forex trading timing is the principle for all types of traders.
To make it easy and understandable, we will break down this article into a few phases. We will discuss different forex market hours, weekend trading, trade overlapping hours, and others.
We all know that currency trading is not centralized by any authority. Forex trading opens 24 hours does not mean it will remain active all day long.
In our what is forex trading article, you will find the definition and more information related to the Forex market.
In a week, traders can place trade only for 5 days. Each trading day is divided into different trading sessions.
On the other hand, the market operates in multiple time zones. The trading time-frame will depend on the broker’s operating country.
If you are still confused about which broker to trade with, then you can have a look in our broker review page.
Traders can earn a trading profit in both ways, whether the market moves up or down. You have to discover which trading hour will bring the highest level of achievement, and which hour will not.
It is impossible to make money when the market does not move at all. This brings up an important question in our minds.
What are the most active Forex trading hours?
The most active trading hours depend on when the market gets overlapped. You will get to know about market overlapping at the end of this article.
Forex Market Hour Clock
Forex trading opening and closing hours depend on the local business hours. Different region follows different trading sessions. If one region’s market closes, then another one opens.
The market opens on Sunday and closes on Friday. Except for 2 days, the currency market is not open on national holidays depending on the local time zone.
Try to remember this fact, the Forex market is only closed for retail traders but opens for Central Bank. Traders can trade at any time of the day and night.
The Forex market based on a fact that always a market open somewhere around the globe.
Each trading day is different from the other one. There is no guarantee that the trading day will remain the same.
Moreover, the trading volatility is not the same for all time. The market opening and closing hours are different in winter and summer months.
Due to different seasons, many countries shift to/from daylight, savings time (DST).
The time changes just 1 hour later in the winter season from the summer times.
Each trading session opens when another session closes. There is also overlapping between New York and London Session.
Asian traders mainly follow Tokyo or Singapore session. European traders generally follow London session and North American traders follow New York session.
There are four major trading sessions. These are
- Sydney Session
- Tokyo Session
- London Session
- New York Session
Let’s have an in-depth look at each session.
Sydney Trading Session:
The trading day starts in New Zealand and Australia. The turnover of the trades is very slow. Trading becomes more active when Sydney joins into the market.
However, the Sydney market is known as the smallest trading market. It is necessary to mention that trading hours begin from this market.
This is the least volatile market among all four markets. For traders, the Sydney market is the most peaceful market.
Asian Trading Session:
Asian trading session considers Tokyo as a major trading market. The real market volatility starts in the Tokyo session.
Most liquid currency pairs like EUR/USD, GBP/USD, EUR/JPY, GBP/JPY, etc are traded in this session. Major pair indicates good signals in Asian session for a long time.
Traders mainly ask one question, which trading pairs should I trade?
There is no particular rule. The market situation is changing over time. Depending on the market movement, traders need to select currency pairs.
When trading news comes from China, Japan, Australia, this could be a good opportunity for traders to trade on news events.
On the other hand, in the Tokyo market, the Bank of Japan has a heavy influence. Therefore, currency pairs with Japanese yen and Chinese Yuan are the best option for traders.
A decent number of currency transactions happen during this Tokyo session. The pip value remains very high during this session.
In the Tokyo session, China is the major player in the trading market. All types of commercial clients including the central bank, participate in the Asian trading session.
Moreover, you will find stronger movement on Asia Pacific currency pairs rather than the non-Asia Pacific pairs.
European Trading Session:
European markets open when the Asian market is about to close. London market is the heart for all currency traders.
The London market dominates the all currency market around the world. On the other hand, business transactions are taken places during this session.
In one minute, thousands of Forex transactions occur. Like the Asian market, a few currency pairs like GBP/USD, EUR/USD, AUD/JPY, etc have the highest amount of trading.
The pip value depends on the volatility of the trading pair. London session is the most volatile trading session because of its large amount of transactions.
It is the only session, which overlaps with the Tokyo session, as well as the New York session.
Traders get a good deal if they continue trading during the European session. Because of the tight spread, traders can full their wallet easily.
It is possible to trade any pairs in this session as we mentioned before, the spread is tight for the traders.
A large number of traders execute their trades when the liquidity is the highest. During the mid-time of the session, the volatility remains low.
North American Session:
After London, New York or North American is the second-largest Forex market session for traders.
In the middle of the London session, North American market opens. Therefore, when the London traders are on the way from their lunch, the US traders are already in the market with their bag and baggage.
In the New York session, almost 90% of the currency that is traded involves US dollars.
You will find major difficulties in the New York market because of the overlapping hours. Because of the news events, the market can really move during this session.
Just before the opening of the North American session, most of the economic indicators and reports are published.
Traders need to pay attention because during the overlap time the market remains more active. Moreover, you can earn a huge profit where risk is also involved. Lower volatile currency pairs like EUR/ GBP, USD/JPY, AUD/USD, etc are active in New York session.
In the Friday session, the market movement is very low. The interesting part is that the New York session is close to shutting down its trading session when the London market is already closed.
The American traders heavily influence the session.
Forex Best Trading Hours
Best trading hours are counted when the market is active. Market overlapping means when 2 or more market is active simultaneously.
In the overlapping of the trading hours, the highest volume of trade is performed by the traders.
When two markets open simultaneously, you will find a large volume of trades placed by the traders to take the advantages of the highest amount of liquidity.
These are the most active hours when one session overlaps another session. Moreover, the bid/ask price is narrower in the active trading time.
The Sydney and the Tokyo market overlapping is not volatile for traders. EUR/JPY is the ideal pair to trade during these overlapping hours.
The Tokyo and London session overlapping time is short. London-Tokyo overlapping is only for 1 hour.
Therefore, traders get very little time to trade with two different currency pairs. Traders perform the least amount of trading during this period.
This session is creating more volatility for their traders. The cross currencies are traded the most in this overlapping time. However, this is the lazy hours for traders.
The overlapping time of New York-London session is considered as the best trading hours. It is the peak time for traders to trade the currency pairs and earn profits.
You can consider this time frame as the busiest period. There are almost 15 individual Forex exchanges available in the overall trading market.
All exchanges are active during this active trading overlapping session. Traders from two enormous financial markets gather here to trade currency pairs.
It is important to give priority to the trading news. However, not all news is that much important for traders.
You have to categorize news event before trading on that. You can see a big market move when the news events come out.
It is the most volatile overlapping hours for traders. Therefore, it is the best time to trade the EUR/USD currency pair.
Best trading hours will not make you a billionaire. Remember, you can lose most of your money in the most volatile market time. Best time to trade depends on the trading strategy.
Forex Trading Day Hours And Night Hours
Traders can consider the trading hour’s clock into two parts. One part is for day traders and another part for night trades.
Day trading is for those traders who have enough time to analyze the market during the daylight. Daytime is the most volatile period because all political news broadcasted at this time.
Moreover, economic events could be affected by the Forex market. Traders who are interested in trade depends on the trading news, often choose this daytime or early evening to place orders.
The people who choose Forex trading as their hobby or side income, mainly trade at night. During the night, both the European market and the American market are not that much active.
However, the Asian markets are quite effective at night. The majority of the traders prefer to trade before the news broadcast. In the nighttime, the market remains less volatile.
You can trade multiple pairs at the same time, at the same price chart. The best trading time for particular currency pairs like Yen, Singapore dollar, etc. is at night.
Forex Trading Time - Weekend Trading
There is a misconception that traders cannot place an order during the weekends.
You will find a few brokers who are accepting trading on the weekend. As previously stated, we already mentioned that the Forex market is only closed for retail traders.
Retail traders are those who trade for their personal account. The currency market continues to operate except on national holidays and local holidays.
If you want to trade at the weekend, then you have to be a market maker. Traders need to analyze the market to perform a trade in a weekend.
As the market is not fully volatile in the weekend, so traders need to pay a high spread.
The weekend market is very important because it will show how you will place orders in the next five days.
Weekend gaps are the key for traders to decide, either you can make money with upcoming Forex currency pairs or not.
You can see the differences between the closing trade day prices with the opening price. Forex market opens with a big trading price gap.
You can find a very rare price gap in the opening time of the Forex market. If there is a gap up, traders will go short and if there is a gap down traders will go for long.
For retail traders, the Forex market is open between 5 pm EST on Sunday until 5 pm EST Friday.
Forex Trading Hours In South Africa
The Forex market opens 24 hours, 5 days a week. The best time for trading currency market is the overlapping hours as per our previous discussion.
The best times for South Africans to trade are during the London session and the start of the New York session. During these sessions, News events and other trading activity cause a great amount of volatility in the currency market.
Moreover, for traders, these sessions are opening up trading opportunities. If you look for the best trading hours in South Africa, then you have to wait for the market overlap. You will find the larger pip movement during this period.
It is a note for South African traders that the time differences between the UK and South Africa are only 1 hour in March. In October, the time difference is for 2 hours.
Why Forex Trading Hour Is Important
The market opens 24 hours, which is the biggest advantage of Forex trading hours.
You can trade anytime depending on your local trading period. The market hours are flexible for traders. Traders can set their trading times as per their schedule.
You can manage your own time more efficiently if you know about the Forex trading hours.
Each session has its own unique features. Traders can use those features to increase their trading performance.
To gain profit from this volatile market, you need to understand properly the Forex trading hours and timing. It is necessary to know all the principles and strategies of each trading sessions.
With the help of the Forex Market Hour’s tool, it could be easy to find out the Forex market opening and closing hours.