The best times to trade Forex currencies
Le marché des changes (forex) est le marché financier le plus grand et le plus actif au monde, connu pour son trading 24 heures sur 24. Mais quand exactement le marché des changes s’ouvre-t-il et se ferme-t- they? Find out the opening hours of the global forex market and the best time to trade forex.
What are the opening hours of the foreign exchange market?
Forex market hours operate 24 hours a day during the week, but the market is closed on weekends. This continuous trading is only possible because forex is traded all over the world in decentralized locations.
The Forex market hours are divided into four main trading sessions:
- New York
These are the largest trading hubs, accounting for nearly 75% of the daily currency volume. The market is open from 10pm (UTC) on Sunday, when the Sydney session begins, to 10pm on Friday, when the New York session closes for the weekend.
Forex market hours
At any time, there is always an open trading session, even if there is downtime when the market is quiet, usually in the evening between 7pm and 10pm, when the New York session ends earlier. of the beginning of that of Sydney.
Forex market session opening times
The opening hours of the forex market depend on which of the four forex trading sessions you are interested in. As round-the-clock trading would be next to impossible, forex traders tend to focus their energies on specific sessions or time frames.
The opening hours of the foreign exchange market are:
|Session||Local time||Eastern Standard Time (EST)||Coordinated Universal Time (UTC)|
|Closure||4 pm.||2 in the morning||7:00 am|
|Tokyo||Opening||9 in the morning||7:00 pm||12:00 pm|
|Closure||18:00||4 in the morning||9 in the morning|
|London||Opening||8 in the morning||3:00||8 in the morning|
|Closure||4 pm.||12:00 pm||4 pm.|
|New York||Opening||8 in the morning||8 in the morning||1 pm|
It is important to know that the opening and closing times of forex also vary depending on the time of year, as countries that switch to summer time and vice versa will change market hours depending on the time of year: March, April, October and November.
What is the best time to trade forex?
The best time to trade forex is when the market is most active – that’s when you will get the tightest spreads and the best chances of executing a trade at desired levels. The forex market is typically most active when market hours overlap between sessions, as this is where the number of traders buying and selling each currency increases.
The overlapping windows for trading are:
- 13:00 to 16:00 (GMT) when the New York and London stock exchanges are open
- 12:00 to 7:00 (GMT) when the Tokyo and Sydney stock exchanges are open
- 8:00 to 9:00 (GMT) when the Tokyo and London stock exchanges are open
The first of these windows, between New York and London, is probably the most important. These two centers account for more than half of all forex trades.
Looking at the average movement of the number of pips of the major currency pairs during each forex trading session, we can see that the London session has the most movement.
|EUR / USD||76||114||ninety two|
|GBP / USD||ninety two||127||99|
|USD / JPY||51||66||59|
|AUD / USD||77||83||81|
|USD / USD||62||72||70|
|USD / CAD||57||96||96|
|USD / CHF||67||102||83|
|EUR / JPY||102||129||107|
|GBP / JPY||118||151||132|
|USD / JPY||98||107||103|
|EUR / GBP||78||61||47|
|EUR / CHF||79||109||84|
In fact, the best time to trade forex will depend on the currency pair you are following. Typically, the greatest liquidity for each currency pair will occur when the pair’s sessions overlap, if both slots are open at the same time. For example, the GBP / USD pair will experience higher trading volume when the London and New York sessions are open.
It is also important to know that high trading activity also leads to high volatility. While some traders appreciate the opportunities that volatility can offer, others don’t, either way, having a risk management strategy in place is essential.
by Rebecca Cattlin, Forex.com ” Official site
Disclaimer: The information and opinions contained in this report are provided for general information purposes only and do not constitute an offer or solicitation to buy or sell any forex or CFD exchange contracts. Although the information contained herein has been obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, and assumes no responsibility for any direct, indirect or consequential damages that may arise from the fact that someone relies on such information.