Forex trading hours

Does not like stocks, currency can be traded 24 hours a day, from Sunday afternoon Eastern Standard Time (or EST) to Friday afternoon EST. The market activity can last 5 and half days a week, there is always at least one financial centre open for business during this period. Indeed, as some markets close for the night, others open somewhere else on the planet. Since forex trading hours overlap, currencies are being traded continuously. In other words, forex practically never stops.

Although Forex market opens 24 hours a day, the trading volume is very different. The trading volume is much bigger when several countries are trading at the same time. It is when currencies are the most active that traders have a better chance of making some profit. Most markets opens from 8am to 4pm in their local time. Therefore, in order to take the advantage of large volume, the best is to look at when the most active.

The following graph shows the main financial center market opening time world widely:



We can easily find the market overlapping from this graph. New York and London: from 8 am to 12 am (EST), Sydney and Tokyo: from 7 pm to 2 am, London and Tokyo markets overlap one hour, from 3 am to 4 am.

What should we trade during these markets overlapping period? Between 8am and 12am (EST), both European and American markets are active. This is when the largest trading volume occurs and also may be a great chance to make profit for the following currency pairs: EUR/USD, GBP/USD and USD/CHF. Another good time slot is from 1am to 3am EST as both European markets and Asian market are active. The large trading volume also happed when Asian and Australian markets overlap from 7pm to 10pm.

Article Source: www.findyourfx.com

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