Forex Trading Basic

Forex Trading Hours : Best Days and times for Forex trading

How to become an introducing broker

This lesson is intended to provide a Forex Market Overview and overview of Forex Trading hours so that you will get familiar with the best times for forex trading and the Best days of the week for trading. But before jumping on to that, you need to know a bit more about Forex Trading hours.

Forex Market sessions

There are three major global regions of the Forex market.

  • Tokyo (Asia)
  • London (Europe)
  • New York (Americas)

These can be called the three major global financial centers of the world; each has a different schedule of operations. While you can trade 24 hours, it may be convenient for you to trade between the opening and closing of these markets, partly because the increased liquidity will allow access to lower spreads, and secondly because outside these times the market it may be too calm, which will not let you take advantage of the inherent volatility of Forex.

Forex Trading Hours

Here is the schedule of the opening and closing times of these markets:

Summer Period (April – October)

Forex Trading Hours

Winter Period(October – April)

Best Times for Forex trading

Best Times for Forex trading

Are there some best times for forex trading? That’s the billion dollar question! Although it is true that Forex market is open 24 hours a day, that doesn’t mean trading at any time will bring desired result for you! That means there are times when the Forex market has increased liquidity and movement, and therefore it may give greater opportunities for good trades.

There are 3 main sessions of the Forex market are: the session of Tokyo (Asian), the London Session (European) and American Session (American), being the London session which usually has better movements in the prices of currency pairs.

But what you need to look for is the certain times when two sessions are open and therefore the volume of trading in those slots will be higher. Specifically, from 8:00 to 9:00 (GMT) Tokyo coincide with the closure of the London opening, and 13:00 to 17:00 the US opening with the closure of London. These strips are especially active, so it may be a good choice to start trading in Forex.

Best Days of the Week to Trade Forex

As we all know that the London session is the busiest session out of all the other sessions, but you will also find certain days in a week where all the markets tend to show more movement. Know the best days of the week to trade Forex.

Below you will find a chart of average pip range for the major pairs for each day of the week:

PairSundayMondayTuesdayWednesdayThursdayFriday
EUR/USD69109142136145144
GBP/USD73149172152169179
USD/JPY4165829112498
AUD/USD588411499115111
NZD/USD2881988710096
USD/CAD4393112106120125
USD/CHF5584119107104116
EUR/JPY19133178159223192
GBP/JPY100169213179270232
EUR/GBP357481797591
EUR/CHF355555648776

In the chart above you can see, it would probably be best for you to trade during the middle of the week, since this is when the most action happens.

Fridays are usually very busy days until 12:00 pm EST. After that the market pretty much drops dead until it gets closed at 5:00 pm EST. This means we will work only half-days on Fridays.

So, on the basis of all these factors, we’ve learned what are the busiest and best days of the week for Forex trading. These are the best Forex Trading hours you can capitalize on. The busiest times are usually the best times to trade since high volatility tends to present more opportunities.

Learn all the Forex trading advantages before getting started with Forex trading.

The Bottom line: Forex Trading hours

In our analysis of Forex Trading hours, we can see there are certain hours when none of the three markets are being running, and there are also Forex trading hours when markets are running simultaneously. For example if you are living in Brazil, between 4:00 AM and 6:00 AM you get to trade with the Tokyo and London markets open, and between 9:00 and 13:00, you get London and New York markets being operated simultaneously. Definitely, during these hours trading volumes will be higher which you must utilize to get profitable trading opportunities.

READ MORE

Chapter 1Introduction to Forex Trading
Lesson 1online Forex trading
Lesson 2Forex Market Overview
Lesson 3Forex Market Participants
Lesson 4Forex Trading Hours
Lesson 5Forex trading advantages

Go back to Main Page: Forex Trading for Beginners

About the author

Syed Nazim

Syed Nazim is the Marketing Manager of RedMaroon, a Digital Marketing Agency for Financial Institutions. He is also involved with Forexing24.com as a writer and financial Analyst. He is a brilliant marketing geek with vast experience in every sector of Digital Marketing. He likes sharing strategies, tactics and proven methods to help you build a business and live the life of your dreams.

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