Forex Market Hours

Forex market hours refer to the specific times when participants can trade currencies globally.

These hours are divided into sessions based on major financial centers (Tokyo, London, New York, Sydney).

Global Forex Trading Sessions

(N/B: Please note that sometimes sessions may start earlier or close later than the official time stated here, due to market activity).

Also worthy to note that even though we have four sessions on the table, the forex market is typically divided into only three sessions (the big three): London, New York, and Tokyo sessions.

The reason is that, unlike Sydney, the big three have higher financial activity, market liquidity or volatility.

They represent the major financial centres for each of the regions (with central banks and a large pool of forex traders).

Key Trading Sessions

London session

This is the largest and most liquid forex market in the world. It is dominated by European banks and has a huge impact on the British pounds and Euro.

UK’s apex bank, the Bank of England plays a significant role in monetary policy & interest rates adjustments which directly affects the volatility and trends of pairs involving the GBP.

New York session

The NY session is the second largest market. Traders heavily speculate this market because the US dollar is paired against most of the currency pairs in forex.

We have two of the world’s largest stock exchanges, the New York Stock Exchange and NASDAQ, influence this session through Federal Reserve, Economic Indicators, etc.

Tokyo session

Here there is less liquidity & volatility compared to the London and NY sessions. But it is still a very significant time zone.

Japan’s Yen partakes in about 16.8% of all global forex transactions.

What is the best time to trade forex ?

The best time to trade forex is during the overlap of major trading sessions, such as the London-New York overlap (8:00 AM to 12:00 PM EST), when market activity, liquidity, and volatility are at their peak.

The best time to trade would first depend on your personal preference, trading strategy, and market conditions.

If high volatility works well with your system, it may make sense to trade when there’s intense trading activity, when sessions overlap between 8am to 12pm ET.

You can also target the periods when markets open or close.

And lastly, the Tokyo session or Yen (JPY) crossed pairs may be ideal for traders who appreciate low volatility.

To be successful with your timing, use technical analysis to identify patterns, trends, and determine your entry and exit points.

FAQs

What are the opening times for the forex market across different time zones?

The foreign exchange market is open and tradable 24 hours a day. Each market or session opens and closes according to the local business hours of its region.

You choose a market or session that suits you (depending on your location or convenience).

Can I engage in forex trading during weekends?

During the later hours of Fridays, the market officially shuts down and resumes Sunday evening.

Weekends are usually a period of zero to minimal trading activity/low liquidity. So you cannot execute trades as a retail trader.

But it is possible to hold trades over the weekend.

At what time does the forex market open and close each trading day?

The market opens at 5PM EST on Sunday, closes at 5PM EST on Friday. This range covers the global market cycle.

This means you can engage in trades whenever you want within this window.

How can one convert forex market hours to different time zones?

You can convert market hours to any time zone of your choice by using a free online time zone conversion tool/website.