Time is money and time is everything! Forex exchange is the worlds largest, decentralized and the most liquid trading market today. But these three traits aren’t the only things making it so lucrative. The Forex trading markets are open 24 hours a day and 5 days a week, giving traders ample time to participate in trades and mint a good buck! But, every geo-location has different times zones of opening and closing the market. Since the currency markets are spread out, whenever one closes, another opens, making it practically non-stop.
Typically, you’d expect the market opening and closing to happen one by one, but some markets overlap with one another. During these overlapping periods is when the currency markets see maximum volatility! If you make a trade during this time period, you are bound to find a counterparty swiftly.
4 Major Forex Trading Time Zones :
Here are the 4 main Forex trading markets with their opening and closing times:
London opens at 3 AM and closes at 12 PM EST
Sydney opens at 3 PM and closes at 12 AM EST
Tokyo opens at 7 PM and closes at 4 AM EST
New York opens at 8 AM and closes at 5 PM EST
Asian Time Zone :
The Asian, European and North American Forex trading sessions see the most activity and are considered to the most dominant. The Asian sessions are known to be mild and don’t see huge levels of activity. When the Tokyo Exchanges open, that’s when the big orders slowly start pouring in. Statistics show that a majority of the trades made in the Asian sessions are on major pairs, with Asian currencies paired up against the USD or the Pound. The Asian exchanges see a lot of Yen, Yuan and the New Zealand Dollar being traded.
European Time Zone :
Following the Asian sessions, the European sessions commence and are considered to be one of the most lucrative time-zones. Once the London exchange opens at 02:00 EST, the volatility goes sky-high and is more or less constant, which leads to a generous amount of high value trades being placed. The most-traded pair is undoubtedly the USD against the Pound or the Euro.
American Time Zone : ic markets discount
Lastly, but far from the least, the most important Forex trading session is the North American session opening at 08:00 EST with the New York exchange. The reason behind this session seeing so much dominance is that most of the trading data is released during this period. In addition to this, the American sessions see the most liquidity due to a mammoth number of orders being placed. And when they overlap with the European sessions, you can be assured of the massive volatility, frequency and magnitude of orders.
There is no special and best time for trading as the market opens 24 hours! However, the best time to trade comes down to your availability and expectation from the markets! You can profit from any trade so long as you know your way around. And if you don’t, that’s what WesternFX is here for!