What are the forex market hours when the forex market is open for trading? In this article, you will learn about the forex trading hours during the day. You will also learn about different forex trading sessions that occur during the same day.
Foreign Exchange Market Is Unique
Unlike the stock market which operates during a fixed time period, the foreign exchange market is unique in that it operates 24 hours a day. The forex market follows the sun around the world, enabling traders to be anywhere with an internet connection to carry out transactions.
However, that doesn’t mean transactions can be carried out at any hour of the day – because certain times prove more advantageous for a forex trader than others due to varying factors such as liquidity, spread, or news announcements.
Therefore, while the foreign exchange market enables traders with added flexibility with its 24 hour timeline, it is important to understand how each forex trading day affects one’s trading strategy. The FX trading times that are available are not always the best times to trade.
Forex Trading Sessions
What are forex trading sessions?
Forex trading sessions are different periods during the day at different parts of the world where forex is traded DURING the day.
There are 3 Main Forex Trading Sessions:
- London Session
- New York Session
- AUS & Asian Trading Session
- (The Asian Trading Session Involves Sydney & Tokyo put together)
Now, let’s look at the forex trading times for each of the forex trading sessions mentioned above.
Note: the times below are given in GMT. You need to convert these times to your appropriate time zone.
Forex Market Hours For London Session
As you can see, the London forex trading session starts at 8AM GMT and Ends at 4PM GMT. Also during the London trading session, the New York Trading session comes into play at 1 PM GMT (there’s an overlap)
Forex Market Hours For New York Trading Session
Referring to the same table above: The New York Trading Session Starts at 1 PM GMT and Ends at 9PM GMT
Forex Market Hours For The Asian Trading Session
If you live in Asia, like in China, Japan, Australia, Malaysia, Indonesia, Philippines etc, the following are the forex trading times. Asia can be divided into two parts, the Sydney and Tokyo trading sessions and there’s an overlap in trading times as well.
The Asian Trading Session Starts at 10 PM GMT and Ends At 7 AM GMT.
Sydney Forex Market Hours
Forex trading session Australian times: Sydney trading session forms the start of the Asian trading session and starts first 10 PM GMT right after New York Forex Trading Session Ends. The Sydney Trading Session Ends at 7 AM GMT.
Tokyo Forex Market Hours
The Tokyo Forex Trading Session ends at 9AM GMT and note that there’s an overlap of 1hr between the London Trading Session and the Asian Trading Session.
Forex Market Hours For Eastern Standard Time (EST)
If you live in Eastern Standard Time Zone, the following are the Forex Trading Hours for your timezone:
- New York Session opens at 8:00 am to 5:00 pm EST
- Tokyo Session opens at 7:00 pm to 4:00 am EST
- Sydney Session opens at 5:00 pm to 2:00 am EST
- London Session opens at 3:00 am to 12:00 noon EST
Forex Market Hours For Australia (AEST)
If you live in Australia in Queensland, the following table gives you the start and end times for the different forex trading sessions in your own time:
As you can see, below, the Asian Trading Session (Sydney + Tokyo) starts as 8am EST and finishes at 7PM EST.
What is great about living in Australia or Asia is that the London Forex Trading Session starts in the afternoon when you are probably at home giving you at least 3-5 hours each day after work to trade the forex market
Other parts of the world are not so lucky like the US or South America where they have to wake up in the middle of the night to trade the London Session.
So folks, if you live in those countries, it may pay to live in Asia if you are making good money trading forex.
What Forex Time Zone Is Used By Your Forex Broker?
You will notice that your forex broker may have a time zone that does not match any of these forex trading times as mentioned here.
Usually, the time zones you see on the forex broker’s trading platform will most likely be the time zone that the country in which your forex broker operates in.
In the scope of things, what time your forex brokers use on the trading platform is irrelevant (not important) at all. All you need to know is the start/end times of the 3 main trading sessions given above in your time zone and that should be sufficient.
If you are still confused about the time used by your forex broker, you should contact them and ask. Most forex brokers would have that information on their websites.
Best Forex Trading Hours?
Here’s the thing: you don’t want to be trading in a slow-moving market. Therefore, the best time to trade the forex market is when the forex market has huge volumes of trades. This means there’s a lot of active trading, economic releases, and there’s a good chance that if you catch a trend at the right times, you can make profits.
A slow market is not something you want to trade in unless it suits your trading style.
I’ve traded the Asian Session and it generally tends to be very slow. Price does not move much at all. You’ll be frustrated and you’ll waste your time.
Overlaps in the Forex Sessions
As you might see in the opening and closing hours for the different Forex sessions, the trading hours can change during certain time periods. The overlap represents the most busy times of the day for Forex transactions due to the higher trading volume that occurs.
During these forex market hours, traders should expect higher volatility and greater liquidity. Currency pairs show fluctuating levels of activity throughout the trading week. and having knowledge on different forex sessions helps you know what hours are best to trade Forex pairs.
The best forex trading hours in my opinion is to trade during the London Session and also trade during the London and New Your Session trading session overlap. That’s when you two lots traders from two different timezones trading together and it does create some good moves in the market and the chance to profit.
Is Picking The Right Forex Trading Hours Necessary For Forex Trading Success?
Yes and No. Let me explain.
If your trading strategy is based on an END of day trading or daily candlesticks/bars and you need to only monitor check once daily to place your trade and walk away, then your trading success won’t be dependent on picking the right forex trading hours.
For example, if you are trading using the inside bar trading strategy based on the close of the daily candlestick, you don’t need to all these forex trading sessions at all because you are not interested in minutes and hours, but just the daily bars/candlesticks.
But if your forex trading strategy is based on the 1-minute chart up to 4hr charts, then you must pick the right forex trading hours to trade.
What Is The Best Session To Trade?
The answer to this question depends on your trading strategy. Generally speaking, the London session is considered one of the best Forex trading sessions due to its high liquidity and volatility. During this session, there is a large amount of currency pairs being traded, which creates more opportunities for traders to capitalize on price movements.
Many traders use the range that is formed during the Asia session as a potential breakout area when the London session opens. Whichever you use, the Forex market schedule offers plenty of opportunity for everyone around the globe.
The Pros and Cons of a 24-Hour Market
The 24-hour Forex market certainly offers certain advantages, in that it allows traders to buy and sell in multiple markets with round-the-clock access. However, this type of currency trading may not be suitable for all traders and should be considered with caution.
Novice traders usually lack the discipline to limit their trading to the major trading sessions. This can lead to trading when the currency market has trading volume that is low. This usually means higher spread costs. Forex traders are best to trade the forex market sessions that are the most popular, such as New York trading sessions as well as overlapping sessions.
To become a successful Forex trader, it is important that you understand when the best times are to trade.
- The forex market is a 24 market and follows the sun around the globe. This means whatever part of the world where it is the day, then forex is actively traded in that part of the world.
- There are 3 main forex trading sessions, the Asian, London, and New York Forex trading sessions.
- The best times to trade forex are during the hours when the market is actively traded with a lot of huge trading volumes going through and the London and New Your Trading Session fits this category. Also consider trading sessions overlap for more price movement.
- Forex Trading during the Asian session tends to be slow and can frustrate you a lot.
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