What Are Forex Market Hours?
The forex market is open for eight hours a day, five days a week. Due to the different time zones in which markets are located, you can trade seven days a week, 24 hours a day.
How Does the Forex Market Stay Open 24 Hours?
To facilitate understanding of the opening and closing times of exchanges around the world, you should consider the opening and closing times everywhere based on a common reference time. For example, the information you read here refers to Greenwich Mean Time (GMT).
Why Should You Use Greenwich Mean Time When Trading Forex?
Some other sites based in the United States may use Eastern Time (ET) as their common reference time. This is not wrong, but it can be confusing. Using a standard global time makes it easier for you to know when you can trade.
Explanation of 24-Hour Trading
The forex market is open everywhere for at least eight hours. When searching for information about the markets, you will often find that they refer to being open “24 hours a day.” This is true – or at least “mostly true.” There are two factors you should be aware of. First, if it’s midnight in New York and the forex market in New York is closed, it is midday of trading elsewhere, such as Tokyo, for example. Second, remember that the forex market, as a global market, is completely virtual. There is no trading pit anywhere. When you enter a forex order at midnight on your laptop in New York, the trade is executed in Tokyo or in one of the many trading hubs around the world that are open when the order is placed. You can trade anytime you want, although you should note that you will have the tightest spreads (the broker’s profit margins) when the most trading centers are open. Specifically, when the trading volume for your cash trade is highest, you will incur the lowest broker fees.
Explanation of the Seven Days of the Week
Another source of confusion relates to how many days of the week the forex market is open. Some websites may announce without further explanation that the forex market is open “24 hours a day, seven days a week,” while others may indicate that the forex market is open “five days a week.” Both statements are correct if you put them in context. They are contradictory, as trading centers are only open for eight hours, but you can trade around the clock. Because trading platforms exist in different time zones, there are hours and days when the market is open that overlap.
What Does This Mean for Individual Traders?
In short, you can trade in the forex market anytime you want. Since there is no need to be in a trading pit or to talk to a broker to execute trades, you can trade at your convenience. Your trade may be executed halfway around the world, but that doesn’t matter because the forex market is open everywhere. This is the basic information you need – at least when it comes to trading hours.
Remember that you will get the best trading spreads when trading volume is at its peak. Forex trading peaks when the largest number of major trading markets are open. As such, there are no more than two major markets open at any given moment. The hours of the Sydney and Tokyo markets overlap, as do the hours of Tokyo and London, and the hours of London and New York.
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Most forex transactions occur between the New York and London exchanges, so it’s best to execute trades between 1 PM and 4 PM GMT, when the working hours of these two exchanges overlap. The Tokyo and Sydney exchanges overlap between 12 AM and 7 AM GMT, and the Tokyo and London exchanges overlap between 8 AM and 9 AM GMT.
Source: https://www.thebalancemoney.com/when-does-the-forex-market-open-1344955
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