Forex Trading Hours

In the Forex markets, it is possible to trade 24 hours a day during weekdays. You can easily trade at any hour from Sunday evening to Friday night.

With a daily trading volume of 5.3 trillion dollars, Forex is the most liquid financial market, and it does not have a centralized exchange. Forex, which can be described as an interbank market, allows investors to trade at any time they wish.

Forex Market Centers Trading Sessions

Currencies Tradable 24 Hours in the Forex Market

Some less popular currencies are not traded around the clock, although the Forex market is open for trading 24 hours a day during weekdays. The currencies that are traded continuously while the Forex market is open are as follows:

• US Dollar
• Euro
• Japanese Yen
• British Pound
• Australian Dollar
• Canadian Dollar
• Swiss Franc

Investors can trade currency pairs that include these seven currencies at any time during the week. However, this is not the case for other currencies.

Forex Trading High-Volume Hours

Although the Forex market is open 24 hours a day during weekdays, some time periods typically have higher trading volumes. This is mainly due to the overlap of trading hours of major financial centers.

The period between 13:00 and 17:00 UTC (winter time) or 12:00 and 16:00 UTC (summer time), when both the London and New York sessions are open, is the busiest. Indeed, the WM/Reuters benchmark spot and forward exchange rates are determined during this interval, at 16:00.

The Best Hours for Forex Trading

Not all times of the day are equally good for trading in the Forex market. The best time to trade is when the market is most active. Especially when at least two of the four major markets are open simultaneously, it means a more intense trading period and higher volatility.

When only one market is open, currency pairs tend to be in a narrow range of around 30 pips on average. In contrast, during sessions when two markets are open simultaneously, especially if there is significant news that can move the markets, movements of over 70 pips can be observed.

Overlaps in Forex Trading Hours

There are four major trading sessions in the Forex market: Sydney, Tokyo, London, and New York. The periods when these sessions overlap are when the highest trading volumes and increased liquidity occur. The key overlap periods can be listed as follows:

1. Tokyo-London Overlap (07.00-08.00)

Although it is a short duration, this overlap can offer advantageous trading opportunities, especially for the JPY-EUR pair. The end of the Tokyo session and the beginning of the London session can see increased volatility.

2. London-New York Overlap (12.00-16.00 & 13.00-17.00)

This period, being the most important overlap, reaches the highest trading volume. Major economic news releases from the US and Europe are typically published during this time, leading to significant price movements. It is particularly important for USD, EUR, and GBP.