Do you want to know about the forex market hours? The forex market is the world’s largest financial market, trading more than $5 trillion each day. Research shows the estimated volume figure as $5 trillion. However, this figure increases or decreases in volume from time to time.
The forex market is open from 5:00 PM EST to 4:00 PM EST from Sunday to Friday. So, it means the market is open 24 hours a day, making the forex market unique to other markets in the world. The reason is that people can trade 24 hours a day. In addition, here are the forex market hours for the most popular markets:
- New York: 8:00 AM to 4:00 PM EST
- Europe: 2:00 AM to 12:00 PM EST
- Tokyo Market: 8:00 PM to 4:00 AM EST
Bear in mind that London is the capital of forex trading because it has the most significant turnover. Another reason is that London has many large financial institutions, including banks and prominent currency trading players. Read on!
Characteristics of the Forex market
The forex market is a 24 hours market that starts from Sunday 5:00 PM through Friday 4:00 PM EST. Forex market hours begin in New Zealand and then Australia, followed by Asia, Middle East, Europe, and North America.
In addition, the U.S and the U.K. account for over 50% of the forex market transactions. About 75% of the New York activity occurs in the morning hours while markets in Europe are open.
The number of open markets and the times each of the markets overlaps determines the total forex volume during each trading day. Let us now discuss the best time of the day to trade forex. Continue reading!
When is the best time of day to trade Forex?
Research shows that the best time to trade forex during the day is between 6:00 and 12:000 GMT and 18:00 to 24:00 GMT. So, this is when experts have recorded the highest percentage of profitable trades. If you are a trader who uses short-term strategies, we recommend Wednesday and Thursday are good days to trade forex.
On the other hand, if you are a trader who focuses more on long-term strategies, you can trade on Monday and Wednesday. These two days are the most successful for trading. Keep in mind that these times or days vary from one region to another and depend on a wide range of factors.
Overall, forex traders believe that Wednesday is the best day to trade currencies in the forex market. One study shows that both men and women say that Wednesday can lead to higher profits. So, regardless of your trading experience, you can expect higher yields if you trade on Wednesday.
Forex Trading Sessions in New York
The trading in New York’s session opens at 1:00 AM GMT and closes at 10:00 PM GMT. The primary currency pairs of the session with the United States dollar are EUR/USD, JPY/USD, USD/GBP, etc.
Research shows that the opening of trading at New York’s and Chicago’s key economic centers trigger worldwide economic activity and growth. So, many market players worldwide take advantage of the New York Session. During the session, larger traders, including banks, transnational corporations, and other financial organizations, enter forex trading.
Forex Trading Sessions in London
Forex trading sessions in London run between 8:00 PM GMT and 5:00 PM GMT. Pairs with the most active trading capabilities in these sessions are USD/EUR, USD/GBP, GBP/EUR, USD/CHF, and other currencies of the region. Moreover, the opening of the London Exchange increases the activity of all currency pairs.
Bear in mind these currency pairs are coupled with the Euro, British Pound, and Swiss Franco. The currency pairs USD/GBP, USD/EUR, and USD/CHF are the most popular and reliable trading assets among different traders, including banks and other financial organizations.
So, if you trade in these sessions, make sure you trade in these popular currency pairs to streamline your trading and increase returns on investments (ROIs). Make sure you use risk management tools to optimize the process.
Because London and New York exchanges account for over 50% of all forex trades, we recommend focusing on these exchanges and know the best forex market hours to achieve success. The best trading times are between 8:00 AM and 12:00 PM for London and 8:00 AM to 5:00 PM for New York. In addition, if you trade in Sydney exchange, the best times are between 5:00 PM and 12:00 AM. Likewise, the best forex market hours in Tokyo are between 7:00 PM and 4:00 AM.