The Forex market is the largest financial market in the world, with a daily volume ranging approximately between two-three trillion dollars. To become a successful Forex trader, one has to carefully study all the important aspects of the foreign exchange market. Among them are Forex (FX) trading market hours, and trading sessions. What do we mean when we refer to FX market hours?
They refer to the hours when FX market participants are able to purchase, sell, exchange, and speculate on different currencies. It is no secret that the FX market is open 24 hours a day, five days a week. In fact, international currency markets are made up of banks, different commercial companies, central banks, hedge funds, investment management firms, not to mention retail Forex brokers and investors around the world. In the Interbank Forex market, the majority of large international banks have multiple offices around the globe, so that they can pass their local clients’ foreign exchange orders to an affiliated branch at any time during the 24-hour cycle. This process would typically be executed in an orderly fashion at any hour of the working week, unless interrupted by a bank holiday.
Banks would operate during regular business hours at each regional office, and the open trading book is passed onto another regional office usually in a later time zone. During these Forex sessions, the city with the major financial hub in the relevant timezone is given the session title during their business hours. If you are trying to analyse the best time to trade Forex currency pairs, it is paramount to understand these Forex sessions and which currencies or markets are most liquid during those business hours, within a relevant Forex session. Since this market operates in multiple time zones, it can be accessed at nearly any time of the day. Moreover, the international currency market is not actually dominated by a single market exchange, but instead, entails a global network of exchanges and brokers throughout the world.
Forex trading hours are based on when trading is open in every participating country.
Major sessions are:
- London session
- US session
- London/US Overlap
- Tokyo session
Minor sessions are:
- Hong Kong
The pattern tends to follow that as one major FX market closes, another one opens. There are certain times that are more active and it’s important to keep track of these. For instance, New York is 08:00 – 1700 EST, Tokyo 19:00 – 04:00 EST; Sydney 17:00 – 02:00 EST; London 03:00 – 12:00 EST. At times when markets overlap, the highest volume of trades take place. Trading With A JustForex Demo Account Trader’s also have the ability to trade risk-free with a demo trading account. This means that traders can avoid putting their capital at risk, and they can choose when they wish to move to the live markets.
For instance, Admiral Markets’ demo trading account enables traders to gain access to the latest real-time market data, the ability to trade with virtual currency, and access to the latest trading insights from expert traders. The Introduction to Trading Sessions – one of the greatest characteristics of the foreign exchange market is that it is open 24 hours a day, as previously mentioned. This enables investors around the globe to trade during normal business hours, after work, and even throughout the night. However, not all times are created absolutely equal.