What Are Forex Market Operating Hours?
- Forex market is open 24 hours a day, 5 days a week
- It opens at 5 PM on Sunday and closes at 4 PM EST on Friday
- Four major Forex exchanges are Tokyo, London, Sydney, and New York
- Forex is open 24 hours a day because of international time zones
What Are Forex Market Trading Hours?
Forex trading hours explained: Forex market is open 24 hours a day in different parts of the world.
Forex trading is not conducted at one central location, rather, it is traded all around the world. Because there are different time zones, the Forex trading market stays accessible 24 hours a day, 5 days a week. Forex market hours EST are from Sunday 5 PM and Friday 4 PM, which means that there always is at least one market open at this time.
Essentially, it can be said that there are no specific trading hours. The Forex market stays open 24 hours a day. However, there are four major markets globally, out of which, at least one is open at any given time. The opening Forex market hours GMT of them are:
- Tokyo – Open from 11 PM to 8 AM
- Sydney – Open from 9 PM to 6 AM
- London – Open from 7 AM to 4 PM
- New York – Open from 12 PM to 9 PM
Sometimes, more than one market is open. When sessions overlap, the Forex trading market sees huge activity. This results in higher volatility and tighter spreads. In most cases, overlaps are thought to be the best hours for Forex trading because of the huge activity in the market.
Overlaps happen between Tokyo and Sydney markets, as well as between Tokyo and London sessions. However, the most significant is the New York and London sessions overlap, which is considered to be the most active time in Forex. New York and London are already huge markets, and their being open at the same time further increases activity in Forex.
Forex trading starts in the Australasia region, followed by Europe. The last market to open is the North American session. If you take a look at the Forex markets hours of operation, you can tell that the market can be accessed any time of the day, five days a week.
How Do Forex Market Working Hours Affect Trades?
The Forex market working hours is one of the most appealing characteristics of the market. The fact that it can be accessed around the clock makes it very popular among traders. Although it can be said that there are specific working hours for the sessions, trading Forex can be done 24 hours a day.
This is the main difference between Forex trading and other markets, such as stock trading for example.
The Forex market hours have a huge effect on the trades. As we have already mentioned above, when it comes to the Forex market operating hours, in most cases, when more than one session is open, the trading activity increases largely.
These periods are accompanied by a large number of trades coming in and coming out. During these times, the trading activity increases so much that the volumes reach new heights. In most cases, the larger activity is associated with tighter spreads.
But, what does it mean when you read that the Euro closed at a certain rate? While it is true that Euro can be traded any time of the day because of the global Forex market hours, the closing price of a certain currency, in this case, Euro, refers to the price that the currency had when the European market closed. For the USD, it would be the price that the currency had when the American markets closed.
It should also be noted that there are some currencies that might not be available for trading at a certain time. There are several domestic currencies that are not as relevant on the international stage, and sometimes during the week, you might not be able to trade some of them.
Why Are Forex Market Trading Hours Important For Traders?
Understanding Forex trading market hours can be very important for traders. There are many things that it can help you with, including a better understanding of what to trade and more importantly, when to trade.
When the Forex trading market first opens, it sees a huge activity. This is especially true after the weekend, on Monday morning when all of the pre-placed orders are coming into the market. This information can be used by traders for their own advantage.
For example, as we have mentioned in the guide above, when there is a huge activity in the market, the spreads tend to be lower. This is creating amazing trading conditions for traders. In most cases, the beginning of the trading day is when most of the Forex brokers are sending trading signals to their customers.
The same can be said about the market activity before the closing of the market. It is especially true for Fridays. Before the market closes on Friday, it usually sees a huge activity. As the market will be closed over the weekend, many traders are opening or closing their positions around the time.
Understanding Forex market active hours can be a huge help for traders as it can help them better plan their trading.
The Best Time To Trade Forex
Because the trading activity in the market changes throughout the day, the liquidity and the volatility of the market vary as well. In most cases, volatility tends to be lower in the Sydney session and it slowly becomes higher when it overlaps with the Tokyo session.
As the London session opens, although the session in Sydney is already closed, the volatility is increasing further. Then, the market sees the highest activity when the two biggest markets, New York and London are open at the same time. In most cases, this period is thought to be the best time to trade Forex. By understanding how this time works, you can better plan your trading.
What Did We Learn With This Forex Market Hours Article?
Forex trading is open 24 hours a day five days a week. The market starts opening from Australasia, followed by Europe and North America.
When it comes to Forex market opening hours, there are four major sessions. They are Tokyo, Sydney, London, and New York.
Sometimes, more than one market is open at the same time. Such overlaps happen between Tokyo and Sydney sessions, Tokyo and London sessions, as well as between London and New York sessions.
The most activity in the market is seen when European and North American sessions are open at the same time.
Understanding Forex trading market hours can help you better plan your trading and understand when it is better to open or close positions.
Detailed Info On Forex Trading Hours
What Time Zone Does Forex Use?
There are four major time zones in Forex. They are Tokyo, Sydney, London, and New York. Forex hours map shows that the market starts opening from the Australasian region, followed by Europe and then, finally North America.
The Sydney session is open from 9 PM GMT to 6 AM GMT, Tokyo is open from 11 PM GMT to 8 AM GMT, London is open from 7 AM GMT to 4 PM GMT, and the New York market is open from 12 PM to 9 PM GMT.
In general, the market is open 24 hours a day, five days a week. It opens from 5 PM EST on Sunday and closes at 4 PM ESt on Friday. The Forex trading market is only closed on the weekend.
Can You Trade Forex At Night?
Yes, it is very much possible to trade Forex at night. This is possible due to the fact that the Forex trading market is not centralized, which means that there is no one place where Forex trading is conducted.
When one market closes, another one opens, and because most of the currency pairs are available on every market, traders can continue trading even at night. The market is closed on Weekends and special holidays.
Although the Forex trading market tends to be slower during the night, it is still open and accessible for everyone.
What Time Is The Forex Market Most Active?
The Forex trading market is the most active just after the open of the New York session at 8 am EST. At this time, it is very likely for liquidity and volatility to increase as traders start opening and closing their positions depending on the market conditions and news for that morning.
When New York and London markets overlap, the market also tends to be very active. The reason for this is that both of the markets are very active on their own, and when they are open at the same time, the activity in the market is increasing even more.