The Best Forex Trading Hours | Forex Market Hours
What makes foreign exchange trading unique is its 24×5 trading hours. As the forex markets spread all over the world, there are fluctuations and trading opportunities in any period of time, and the exchange rate fluctuations of each currency are different in different market sessions. Here, ZFX will explain to you how forex investors can choose the best trading hours for themselves.
Overview of the global forex market
At present, there are about 30 major forex markets in the world, which are spread across different countries and regions on all continents. According to the traditional geographical division, it can be divided into three parts: Asia, Europe, and North America. The most important markets are:
- London, Frankfurt, Zurich and Paris in Europe
- New York and Los Angeles in the United States
- Sydney in Australia
- Tokyo, Singapore and Hong Kong in Asia
Due to regional time difference, the local markets are linked with each other without interruption. The forex market is open Monday through Friday and closed worldwide on Saturday and Sunday until 5 am Beijing time (GMT+8) next Monday, with New Zealand opening first.
Forex market hours and price fluctuation patterns
Please note that different currency pairs vary in their fluctuation times. Generally speaking, the local currency tends to be more active in the trading sessions of the local foreign exchange market. For example, for New Zealand and Australia in the Asian region, the Australian dollar (AUD) and the New Zealand dollar (NZD) are more likely to see significant movements in the early trading hours of Asia, whereas the fluctuations of European and American currencies are usually clustered in the evening of Asian time. This is also due to the timing at which economic data are released in different regions.
On the other hand, because the United States is the leader of the global economy, the overlapping trading hours between the United States and the European market (referred to as the European and American time), that is, from 8 pm to 1 am Beijing time (GMT+8), are the peak of market trading, and the exchange rate is most prone to significant fluctuations. This period is also ideal for Asian traders who just put down their jobs as well as amateur investors.
Traders in Asia can start as early as 3 or 4 pm Beijing time if they are not overwhelmed by their work, so as to take advantage of the time frame, analyze the market condition and make the best move.
Forex trading is around the clock and can be roughly divided into three major sessions. Let’s see the three forex market sessions in a chart:
Best forex trading hours Advice
1 / Asia – Europe Overlap (around 15:00-16:00 GMT+8)
As the market trade begins to become active, a trend or some signs of change or even breakthroughs will emerge.
2 / London and New York Overlap (around 20:00 – 24:00 GMT+8)
As major banks will participate in the market, it’s often the busiest time of the day. With economic data coming out from Europe, the United States and the United Kingdom, the market trend is likely to be the most evident with the increase of market volatility and bulk trading.
3 / Midweek (Tuesday to Thursday)
Midweek is the time of the week when trading is more active. It’s because the market begins to digest information from various outlets, and the rise and fall become more predictable, with fewer disorderly fluctuations.
Periods not suitable for Forex trading
1 / Friday
Avoid holding into the weekend, since during the closing time any unwelcome news can arise and there is considerable risk to the transaction.
2 / Holiday
Some major banks are closed, which may lead to low trading volume and occasionally high exchange rate volatility, so trading is not advisable
3 / Major events
Major events tend to throw markets out of order temporarily and take time to digest, with volatility increasing the risk of market entry.
Choosing a better time to trade is merely a small trick for forex trading, not the key to winning. If you want to be more positive about profit-making, you should keep monitoring the market closely and master the techniques of forex trading.
Risk Warning: The above content is for reference only and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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