Understanding Forex market hours is key to trading effectively. The Forex market is open 24 hours a day, divided into four main trading sessions:
1. Sydney Session (10 PM – 7 AM GMT)
The Sydney session kicks off the trading day. It’s usually quieter, but offers opportunities for trading pairs involving the Australian dollar (AUD).
2. Tokyo Session (12 AM – 9 AM GMT)
The Tokyo session is known for higher volatility in pairs like USD/JPY and EUR/JPY. Traders can capitalize on the strong movement in Asian markets during this time.
3. London Session (8 AM – 5 PM GMT)
The London session is the most active, with high liquidity and major price movements. It overlaps with the New York session, making it the best time for trading popular pairs like EUR/USD and GBP/USD.
4. New York Session (1 PM – 10 PM GMT)
The New York session features significant volatility, especially when economic reports from the U.S. are released. It’s an ideal time for trading USD pairs.
Conclusion:
Knowing when to trade is crucial for maximizing profits. Focus on the London and New York overlap for the best liquidity and trading opportunities.