Forex Market Hours – important role for all Forex traders

The Forex market hours is the time when participants are able to buy, sell, exchange and speculate on currencies. The Forex market is open 24 hours a day, five days a week. International currency markets are made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail Forex brokers and investors around the world. Because this market operates in multiple time zones, it can be accessed at almost any time. Generally speaking, the most active Forex market hours all around are between the London markets opening around 8:00 GMT and end with the markets in the US closing around 22:00 GMT. The absolute busiest time in the Forex markets are during the London to US overlap between 13:00 GMT to 16:00 GMT. These are the hours that are the most liquid or when the most traders are in the markets making trades. If your intention is to do day trading, these are key Forex market hours.

The Forex market hours play important role for all Forex traders over the other investment markets traders. Its open 24 hours a day, six days a week. Whereas the commodities and stock market operates five days a week (Monday through Friday) during normal business hours, the Forex market continues its activity around the clock. If you want to trade at 2:00 am EST Monday morning, feel free to place your trade. If you would like to invest at 9:00 pm Thursday night when you have the time to concentrate on the market, simply place your trade on one of the many online Forex trading systems . However, even though the market is considered a 24-hour market, it’s important to know when the Forex market hours is actually active and when is the best time to place a trade on the market.

Three major trading Hours define the daily Forex market, namely the Tokyo Trading Session, the London Trading Session, and the New York Trading Session.

The Forex market hours

Tokyo Forex market hours are 7:00 PM – 4:00 AM (New York Time). Tokyo is the first market to open and many large participants use the trade momentum there to develop their strategies and as a gauge for future market dynamics. Approximately 6% of the world’s Forex transactions are enacted in the Tokyo Trading hours.

London Forex market hours are 3:00 AM – 12:00 PM (New York Time). London is the largest and most important trading center in the world, with about a 34% market share of the daily Forex volume. Most of the world’s largest banks keep their dealing desks in London because of that market share. The large number of participants in the London Forex market and the high value of the transactions makes the London session more volatile than the other two sessions.

New York Forex market hours are 8:00 am – 5:00 pm (New York Time). The second largest trading market, New York handles approximately 16% of the world’s Forex transactions. The majority of the transactions in New York occurs during the US/Europe overlap; with transactions slowing as liquidity dries up and European traders exit the market. Since California has never served as a bridge between the US and Asia, there is a 50% drop in activity by midday. As a result, market developments in the afternoon during the New York session do not garner as much attention. The New York session is heavily influenced by the US equity and bond markets and pairs will often move closely in tandem with these capital markets.

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