Lesson #5: Forex Market Hours
This section of the website will help clarifying the concepts of Forex Market Hours and Forex Trading Sessions.
One of the main advantages of Forex markets is that they are open during all working weeks – from Sunday 10:00 P.M (GMT) to Friday 10:00 P.M (GMT). Now it is logical to ask yourself a question – What times are the best for trading within Forex Market Hours?
Generally talking, the most interesting Forex Trading times are between the opening of the London stock exchange begins its activity, around 8 A.M. (GMT), and the closing of the american market, which takes place around 10 P.M. (GMT). The most hectic time in the Forex market is when the London stock exchange overlaps with the american market between 1 P.M. (GMT) to 4 P.M. (GMT). These are the times which can be considered as the most liquid or when the most Forex traders are trading in the markets. If your interest is to do day-trading this the way you should use to make trades.
Forex Trading Sessions sorted by relevance:
Forex Trading Sessions
There are four trading sessions in the Forex market, which take place every working day when the Forex markets are open: The Pacific trading session, the Asian trading session, the London trading session and the New York trading session.
London trading session
The London trading session starts about 8 A.M. GMT and ends at around 4 P.M. GMT. The most active Forex currencies during this time frame are GBP, EUR and USD
New York trading session
The New York trading session starts at about 1 P.M. GMT and ends at about 10 P.M. GMT. The most active Forex currencies during this time frame are EUR, GBP,AUD, JPY, and USD.
Asian trading session
Asian trading session very often is the quietest session of the Forex market. All currencies move very slow and it’s not a very good time to day-trade. The only real Forex currency in this period, which has newsworthy activity, is the JPY and the activity is slow until the main financial events happen.
Pacific trading session
Pacific trading session begins when Australian and the New Zealand markets open. This is one of the quietest sessions for Forex trading. Majority of traders’ activity is focusing on the currencies: AUD, NZD, USD.
The best times for Forex trading within Forex Market Hoursare during the London and New York trading sessions overlap, no matter of your trading methods. Forex market is full of very active participants during these times and the Forex pairs are really moving. For the most part, even the biggest news from the different parts of the world come out during these hours. Trading during these times can be very profitable since the Forex market is making important moves and therefore it can be your best chance to score fast profits.