Best Time to Trade Forex Market
What Are The Forex Market Hours?
Forex market hours run 24-hours a day during the week, but the market is closed on weekends. This continuous trading is only possible because forex is traded all over the world in decentralized venues.
Forex market hours are broken up into four major trading sessions: Sydney, Tokyo, London and New York. These are the largest trading centers, accounting for nearly 75% of FX daily volume. The market is open from 10pm (UTC) on Sunday – when the Sydney session starts – to 10pm on Friday when the New York session closes for the weekend.
Forex Market Session Opening Times
Sydney
AEST
5:00 pm
2:00 am
Tokyo
JST
7:00 pm
4:00 am
London
GMT
3:00 am
12:00 pm
New York
EST
8:00 am
5:00 pm
Chicago
CST
8:00 am
5:00 pm
Los Angeles
PST
5:00 am
2:00 pm
Note that these times are subject to change due to daylight saving time, and there may be slight variations depending on the specific forex market being traded.
When Is The Best Time To Trade Forex?
The best time to trade in the Forex market depends on several factors, including currency pair, trading strategy, and personal schedule. However, there are specific times that tend to be more active and offer better trading opportunities due to higher liquidity and volatility. These times are:
Overlapping of European and US trading sessions: The overlap between the European and US trading sessions (8:00 am to 12:00 pm Eastern Time) is considered the most active and liquid time in the Forex market. This time period is known for providing significant price movements, making it a popular time for traders to execute their trades.
Asian trading session: The Asian trading session (7:00 pm to 4:00 am Eastern Time) is known for being a bit quieter in terms of price movement and liquidity compared to the European and US sessions. However, some currency pairs, such as AUD/JPY and NZD/JPY, tend to have increased volatility during this session due to their correlation with the Asian markets.
News releases: Major economic news releases, such as the Non-Farm Payroll report, GDP, and interest rate announcements, can create significant price movements and trading opportunities in the Forex market. These news releases typically occur during the European and US trading sessions.
It is important to note that trading during these times may also come with increased risks due to higher volatility, slippage, and spread widening. Traders should always practice proper risk management and adapt their trading strategies to the current market conditions.
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