Forex opening and trading hours

Forex trading hours is something that many novice traders have a misunderstanding with. It seems that this point can be elementary explained. For example, simply by stating the hours of its operation. But we want to dig a little deeper.Read on to learn about Forex trading hours, which hours are the most active, and how to use the time zone converter correctly.

Forex trading hours

So, Forex has trading hours. More precisely, these are the periods of time during which users can make their trades. The market operates five days a week and is closed on weekends - Saturday and Sunday.

Understanding the Forex operating hours

You see, every region of the world has its own financial centers. We are talking about cities where banks, financial institutions and simply big companies are concentrated. All economic flows of the region converge and are processed in this center. For example, in Asia it is Tokyo and Singapore, in Europe - London, Paris, etc. Depending on the time and through which center the currency flows of the financial center are processed, trading sessions are distinguished.They may vary by asset class and country. For example, a typical U.S. equity session begins at 9:30 a.m. and ends at 4:00 p.m. Eastern Time (EST) on weekdays (excluding holidays).

And the regular weekday trading session in the U.S. bond market runs from 8 a.m. to 5 p.m. EST. - Eastern Time.

The most active hours

The European and American sessions have the highest volatility and trading volume. The Pacific session is the quietest.If we summarize the most active hours for each region, it would look like this:

• New York - 8 a.m. to 5 p.m. (EST)
• Tokyo - 7 p.m. to 4 a.m. (EST)
• Sydney - 3 p.m. to 12 a.m. (EST)
• London - 3 a.m. to 11 a.m. (EST)

Special considerations

Below is a list of things you should definitely consider as a potential Forex trader.

The most popular currencies

The most popular currencies are the US Dollar, Japanese Yen, Euro, Australian Dollar, Canadian Dollar, British Pound and Swiss Franc.

High volume and efficient pricing

At times, brokers bring supply and demand closer together, increasing pricing efficiency while reducing transaction costs for traders.

Trading before and after the close

Trading also takes place outside the established time frames of the stock markets. There is such a thing as "pre-market" trading. In fact, there is also "after-hours" trading.This is actually trading directly - without intermediaries. This may sound cool, but we can't help but notice that many brokers seriously stratify the types of trades you can make under such conditions. Moreover, just because you can trade after hours doesn't mean you should.

When does the cryptocurrency market open?

The cryptocurrency market chart is the easiest to memorize. The fact is that cryptoassets are traded 24 hours a day, seven days a week. From bitcoin to the most insignificant altcoin, you can exchange them whenever and in whatever quantity you want. But there is a catch.Not all brokerage firms offer access to cryptocurrencies, so you should check if the platform you choose allows you to buy and sell digital assets.

If not, consider another option. For example, you can choose a decentralized exchange, of which there are many.

Oh, it's also worth mentioning that ETFs and cryptocurrency funds can be traded during regular hours.

When will the market open for commodities trading?

Commodities trade on the CME Group exchanges from 6 p.m. Sunday to 5 p.m. Friday. But you can also trade on the Intercontinental Exchange, which is a little less profitable, because it works from Sunday 8 pm to Friday 6 pm.This is directly about commodities. If you are trading stocks or commodity-related funds, you can do it during regular business hours.

Are markets open at weekends?

Saturday and Sunday are non-trading times. But there are times when you may be surprised to find out on Sunday evening that stock futures are down. This is because most of them do not start trading until late Sunday afternoon.

What is the opening time for international stocks?

If you want to trade international stocks, you need to know how the world's major stock exchanges work. Here's a little cheat sheet for you:

1. Toronto Stock Exchange (TSX): 9:30 a.m. to 4 p.m.
2. Mexico Stock Exchange (BMV): 9:30 a.m. to 4 p.m.
3. London Stock Exchange (LSE): 3:00 a.m. to 11:30 a.m.
4. Euronext Paris (EPA): 3 a.m. to 11:30 a.m.
5. Frankfurt Stock Exchange (FRA): 3 a.m. to 11 a.m.
6. Tokyo Stock Exchange (TSE): 8 p.m. to 10:30 p.m., 11:30 p.m. to 2 a.m.
7. Shanghai Stock Exchange (SSE): 9:30 p.m. to 11:30 p.m., 1 a.m. to 3 a.m.
8. Shenzhen Stock Exchange (SZSE): 9:30 p.m. to 11:30 p.m., 1 a.m. to 3 a.m.
9. Hong Kong Stock Exchange (HKG): 9:30 p.m. to 12 a.m., 1 a.m. to 4 a.m.

How to use the time zone converter

A time zone converter shows you which trading sessions are currently open in your local time. These converters are (usually) an interactive table of times, time zones and cities. For example, it might look like this.It is easy to use. As for us, we can advise you to focus your trading activity around the Tokyo, London and New York sessions.

When is the best time to trade in Forex?

You can trade at any time, but not without nuances. Let's take day trading as an example.

9:30 a.m. - 9:50 a.m.

This is the first time after the opening of the session. Here is the highest volume, the most dangerous and at the same time profitable trades, so they are definitely not suitable for beginners.

9:50 a.m. - 10:10 a.m.

This is the time of the reversal zone. The volume here is quite high, but not as high as in the first 20 minutes of trading.However, this is probably the most optimal time for Forex trading. The thing is that the volatility of transactions is still high, but some stability has already returned. The market is simply calm.

10:10 am - 10:25 am.

Volatility decreases and it is possible to trade with low risk. This is the favorite time of many big traders. But beware, the pros are now starting to set the tone and move the market in a favorable direction.

10:25 a.m.-10:30 a.m.

The market calms down completely: the high volatility is over and many traders close their positions at this time. This is the best time to prepare for new trades.

10:30 a.m. - 11:15 am.

Just a large and secure trading area.

11:15 a.m. - 2:15 p.m.

Not the best time to trade. The reason for this is a lot of false fluctuations and jagged sideways lines on the chart. If you are not experienced enough, you can easily lose all your morning profits.

2:15 p.m. - 3:00 p.m.

By this time, more trends have been established.

3:10 p.m. - 3:25 p.m.

Follow the trend and be careful - there are often trend reversals and stops around the 15:30 mark.

3:30 p.m. - 4:00 p.m.

The last half hour of the afternoon session. It is better not to trade during this time. Many large investors adjust their portfolios at this time and we advise you to do the same.

FAQ

What are the 4 Forex trading sessions and hours?

There is a total of 4 trading sessions:

1. London market - 7 a.m. to 4 p.m.
2. New York market - 9 p.m. to 6 a.m.
3. Sydney market - 12 p.m. to 9 a.m.
4. Tokyo market - 9 a.m. to 3 p.m.

What time does the US Forex market close?

At 5 p.m.

What is UTC time?

UTC is world time. It is the standard by which all other times are measured.

What time does the Forex market close?

At 5 p.m.

What are Forex sessions?

A session is the time during which you can trade.