Forex Trading Hours
The Forex market is the only market where you can trade 24 hours a day. Not because there's a
central market or exchange that opens 24 hours, but the continuation of opening hours from one market to another.
Depending on where you are in the world, your day may start in one particular market, say the New York (NY) market
if you're in the USA. When the NY market is in the midst of closing, the Australian market opens, then the Japan
and Singapore markets open. When these Asian markets are in the midst of closing, the European market (Frankfurt
and London) opens. When the European is about to close, the NY market re-opens. Between openings, closings and
overlaps, the forex market turns up open all the time except the weekend. That's how the Forex market becomes a 24
hour market, making it more exciting than the stock market which can only be traded when the particular exchange
for the stock is open, normally during office hours.
Trading Begins by City:
Wellington → Sydney → Tokyo → HK → Singapore → Moscow → Frankfurt → Paris → London → Zurich → New York
However, just because the forex market is open 24 hours does not mean that trading opportunities
are also available 24 hours for the intraday trader. This is the mistaken believe of every novice traders. The
trick to achieving profits on an intraday basis is to be aware of its volatility. Pips come in easily when
when the market is volatile. But how do you know when to expect higher volatility?
Every time you sit in front of your computer, remember this: Are you going to trade at the right
time? The right timing alone will be enough to improve any day trading strategy performance. If you're not
aware of the right timing, you're going to end up spending hours and hours in front of your computer screen,
waiting for some movement that allows you to make money. Not the smartest way to trade in forex.
What are the best periods to be sitting in front of your computer waiting for the iron to get
hot before you strike? The best periods of the day to trade Forex are when the markets around the world open or
close. These times are:
| 3AM EST |
London open |
| 8am EST |
NY open (news embargo) |
| Noon EST |
London close |
| 5pm EST |
NY Close |
| 7pm EST |
Tokyo open |
| 9pm EST |
Singapore open |
Although any one market opens at exact times, give yourself leeway of about an hour before and
after market openings to see your window of opportunity. Especially for the London open, be ready by 1-2AM EST to
see if you should be going long or short.
The London, US session and the overlaps (depending on where you are in the world) will be the
most critical part of your trading because that's where the bulk of the volatility is. London corners the market
with 32%, New York with 18% and Tokyo with 8%. Singapore follows with 7%, Germany has 5% and Switzerland,
France and Hong Kong have 4% each. You should be extra careful during the U.S session because of the many news
events in that session. When news come out, price can go any other way. You don't want to be caught in an opposite
position when the market reacts to news.
The prime trading periods for day traders:
12:30am (ET) - 5:30am (ET)
7am(ET) - 12pm(ET)
1:30pm - 5pm (ET)
Check world time converter or go here to
convert EST to your local time. http://www.timezoneconverter.com
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