Forex Market Hours

When it comes to trading in the foreign exchange market, you won’t get a lot of opportunities to gain the upper hand on other people; there are a few things to consider though, such as the hours which are best for trading. The foreign exchange market is open 24 hours each day 6 days a week and because it is an international holiday there are no holidays that you will be forced to take off. While it’s true that this can make trading more convenient, it also means that you will have an increased amount of competition to put up with at certain times of the day more so than others. By knowing which times of day it is best to trade where you live, you will be able to significantly increase your chances of getting a lot of money from your currency pair trades.

Just because the forex market is open 24 hours a day does not mean that it will be busy all of the time. When the market is busy it is referred to as being “active” whereas at certain hours of the day it is “passive” which is when it can be a great time to strike and make some trades that will earn you quite a bit of money. Once you start to learn more about the market itself, you will quickly discover that there are certain times of the day when the market is crawling, going extremely slow. Most traders in this market refer to it as the “rest period” which other people use to sleep or simply take a break from trading, but there are others who use it as a prime opportunity to do business.

When it comes to trading times, there are three sessions which these hours can be broken down into—The U.S session, the Tokyo session, and the London session. In Tokyo trading is open from 7PM-4AM EST, in London the times range from 3AM to 12PM and in the U.S it is open from 8AM to 5PM. No matter what time of day it is, somewhere in the world people will be trading in the foreign exchange market. Just by looking at these hours you will be able to determine for yourself when the market is going to be at its busiest and at its slowest. Usually when two of the sessions coincide and are occurring at once, the market is really moving fast and there is a lot of liquidity.

Those times when there are no trading sessions which are active, the market is said to go very slowly. You will find that the market is usually at its fastest anywhere from 8AM-12PM EST and in this instance both the U.S and London markets are open simultaneously. The Tokyo and London markets are also open at the same time from 3-4AM EST, so that can be a great opportunity for you to start trading and do as much business as possible before things start to slow down once again. Anywhere from 5PM-7PM EST the market tends to slow down and there are really no active trading sessions to speak of.  Most traders consider the very first hour that the London market is open to be the most volatile because of the sheer number of traders who are active, many of which are scalpers.

Most of the time Fridays are when the market is at its most unpredictable so you really won’t know what to expect until you start trading. Usually Friday also brings the biggest financial news in the market so it can be very eventful for those who are involved with this type of trading. A majority of traders tend to close out their positions the day before on Thursday and do a lot of their trading over the weekend because how unpredictable and chaotic Friday can be. Most traders consider Sunday to be the slowest day of the week because everyone who is involved in the market is still trying to get back into the swing of things.

When you know about the best hours to trade in the forex market you will be able to give yourself the kind of odds that every trader wants. There are many different things you can do to help ensure your success to some degree, but there are few things as helpful as knowing which time of day is best for trading. When you consider that the forex market is all about timing, it is obvious that when you are doing business is important to how successful you are.

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