If you are interested in the forex market or just beginning with trading practice, a few questions will definitely strike your mind: when is the best time to trade or what time does the market open up? Is there any time you should avoid trading? And maybe a few more added to this queue.
However, to answer all your queries we have compiled this blog and presented a comprehensive study of forex market timings and best practice time.
Understanding Forex Market Hours
Forex market hours refers to the specific time period when the trade is facilitated. The market tends to operate 24 hours a day, operating on weekdays. The time period is equivalent to all types of investors ranging from government to business owners, hedgers to speculators. Anyone can conduct an exchange process in the foreign market at their convenience.
Though you have the flexibility to choose your time for your currency exchange, it is suggested not to do so. As forex exchange market is only beneficial to you if you run along the market. Trading when the market stops or lies at a position, won’t give you any sort of results. So, trading is open all day long, but transactions are only to be facilitated as per the market operating hours.
However, it is also important to note that the market operates in multiple time zones. So, while you choose the currency for the exchange, it is also important to consider the session you need to operate on.
Forex Market – Time Zones
As we discussed in the above section, the forex market operates in different time zones, so it opens on Sunday at 5 p.m. local time in New York City closes on Friday at 5 p.m. for the next 48 hours, and then resumes the next week.
However, the market operates in four major time zones followed as:
- Sydney session – Opens 9:00 pm to 6:00 am UTC
- Tokyo session – Opens 12:00 am to 9:00 am UTC
- London – Opens 7:00 am to 4:00 pm UTC
- New York – Opens 1:00 pm to 10:00 pm UTC
Well, trading sessions are more effective when there are good volumes, which is explained in the section.
Forex market volumes
Forex market is beneficial while you are trading on volumes of transactions. A time when two trading sessions overlap is termed as to be a hit point of the trade market and thus known as a volume trade.
Hence, it is always suggested that you should be active while the market responds. As, you can earn whether the market goes up or goes down, but not when the market is still and has no sign of movement. That’s why it’s often focused on being energetic and keen toward the trade movement as a lot of trade occurrences will definitely bounce the volume to your account too.
What is the best time to trade?
The best time occurs on the weekdays when more and more traders are engaged. The more traders, the higher the volume of notices and the more active the market will be. And, as we know, the more active the market, the higher the chance of getting spreads.
So, do usually trade when two financial centers are engaged and a bulk amount of trade is engaged in facilitating the exchange. Also, try to avoid the null hour for your best experience. Read our previously published article on how to learn forex trading?
Moreover, the highest trading volume occurs at the overlap of London and New York trading sessions. As per the reports and data, 50% of the trading volume occurs at this time period leading the market to respond accordingly.
Frequently Asked Questions (FAQs)
There are four time zones such as Sydney, New York, Tokyo, and London.
The best time to trade is when two financial centers overlap, at that time the market will be at a peak for its movement.
You should avoid trading when the market is constant and not moving.
The market operates on weekdays for 24 hours.
Forex market opens up on Sunday at 5 p.m. New York time, and closes on Friday at 5 p.m. as New York time.
