The Foreign Exchange market is a global decentralized or over-the-counter market for the trading of currencies. Trading is available from different time zones all over the world 24 hours a day. But the most crucial question is: Are we going to profit for all the 24 hours? Of course not! There are specific times when nothing happens at all.
On the other hand, there are also times when the market is active, and there is high liquidity. Liquidity is the ability of an asset to be converted into cash quickly and without any price discount. It mostly happens when active sessions overlap.
For you to have a successful trade, it is pretty critical to know the best market hours. In this article, you are going to learn the best market hours for trading, including some productive days of the week and the most potential trading sessions.
Best Hours for Forex Trading
As I have said, the Forex market opens 24 hours a day from Monday to Friday. But there are some instances that trading is temporarily suspended at the end and the beginning of each day. The market rollover is called when there is a pause in trading.
Forex Market Opening and Closing Time
On Monday at 8:00 a.m. in Wellington, New Zealand time the Forex market opens, and it closes for the day at 5:00 p.m. in New York, US time. The Forex market also closes for the week at the same time on Friday. The Forex market is closed on weekends and opens again when New Zealand resumes business on the following Monday.
Currencies can be traded around the clock because major financial centers pass the facilitation of trade to each other when countries open and close for business. The opening and closing times of significant financial exchanges around the world usually marks the Forex trading times. The most relevant countries where Forex trading times are recorded are Japan, Australia, UK, Germany, and the US.
Most Manageable Forex Trading Sessions
There are three main sessions in Forex trading, namely Asian session, European session, and US session. These sessions overlap with another session for some time. The cycle repeats when the market rolls from the US session back to the Asian session.
Each forex trading session has specific trading times during daylight saving time.
- Asian session: 12:00 a.m. – 11:00 a.m.
- European session: 7:00 a.m. – 4:00 p.m.
- US session: 3:00 p.m. – 12:00 a.m.
Wherever you are in the world, you must be aware of these times. It is also manageable if you know how to convert these times into your local time.
The Asian Forex trading session begins at the start of the business day in Wellington, New Zealand. This happens with the pre-open trading time of the Australian Stock Exchange (ASX) in Sydney. It ends at the close of the business day in Tokyo, Japan, time. This is when the Tokyo Stock Exchange (TSE) closes.
The European Forex trading session begins at the start of the business day in Frankfurt, German time. This happens with the opening time of the Deutsche Börse, which is the German Stock Exchange. It ends at the close of the business day in London, UK time. This is when the London Stock Exchange (LSE) closes.
The US Forex trading session begins at the start of the business day in New York, US time. This happens with the opening time of the New York Stock Exchange (NYSE). It also ends at the end of the business day when the NYSE closes.
Access of Technology to Forex Market Hours
If you are tech-savvy, you might find this beneficial. You can download the FXHours app from Google Play or App Store to your smartphones. Through this software, you can view each Forex trading session opens and closes based on your local time.