1 December 2022
Forex platform: trading hours and its specifics
Trading currency pairs has always been present on the internet and is a great source of stable income. But not everyone knows how to use it properly and either give it up or don't even start. Regardless of whether you are new to Forex trading or an experienced trader in the currency markets, all users have one thing in common: to become a successful trader.
Yes, Forex has a lot of nuances that you need to learn, but gradually delving into the subject, you can forget about any problems.
One of the curious things about the foreign exchange market is that it operates 24 hours a day. Round-the-clock trading allows investors from all over the world to trade during regular business hours, after work or even in the middle of the night. However, not all hours of the day are the same when it comes to Forex trading.
Forex working schedule
Forex has three sessions of activity peaks: Asian, European and North American. Trading always opens on Monday, when the Asian market activates, and closes on Friday, when the American session ends.
However, not every world market dynamically trades currencies, so each currency pair has different trading activity at certain times of the day.
When trading in the European market is active, currency pairs involving the Euro (EUR) and British pound (GBP) are the highest. When the USA and Canada join the market, the USD/CAD tend to be more active.
What is the best time for trading?
The currency pair EUR/USD is the most popular in the Forex market, because the majority of trades are made with it. Day trading EUR/USD will probably be most active when the exchanges in London and New York are open. These sessions are open from 08:00 to 22:00 GMT. Traders can ideally trade between 07:00 and 20:00 GMT.
Another feature of the market is the operation of two markets simultaneously. At this time, the number of traders actively buying and selling a particular currency increases significantly. Offers and requests on one currency market exchange immediately influence offers on all open exchanges. This reduces market spreads and increases volatility. Approximately, we can identify several points:
- From 1:00 p.m. to 5:00 p.m. (New York and London markets are open)
- From midnight to 7:00 a.m. (Tokyo and Sydney markets are open)
- From 8:00 a.m. to 9:00 a.m. (Tokyo and London markets are open)
* All times are given according to Greenwich Mean Time - GMT (UTC+0)
Of course, Forex has a lot more features of the trading market, which can't be described in one article. By studying this sector a little at a time, you will definitely be able to make a profit and become a successful trader.