Forex exchange trading hours are best when the market is increasing its liquidity and activity. However, not all traders have complete knowledge about forex trading sessions. At the same time, we still don’t know when is the best choice. This article Lear Forex Trading will help you determine the ideal time frame to execute trades effectively!
General information about Forex exchange trading hours
The forex market is a place where currency trading and exchange activities continuously take place. In particular, it is not limited by geographical factors or borders.
What is a forex trading session?
A trading session in the Forex market refers to a period during the day. When the exchange doors open and currency transactions take place. The Forex foreign exchange market usually operates continuously 24 hours a day from Monday to Friday. The series of trading sessions begins in Sydney, followed by Tokyo, and London, and ends in New York.
Each trading session brings its characteristics. Including price fluctuations, increases, and decreases in trading momentum and transaction volume. Overlap between trading sessions creates unique trading opportunities. This makes it important to recognize currency value differences.
See more: Trade smarter with Demo Trading
Why are there Forex exchange trading hours?
The Forex market is a non-stop financial center, operating 24 hours a day. Actively active from Monday to Friday every week. In other words, this market continuously conducts currency trading and exchange transactions. It is not bound by geographical distance or borders.
The main reason why the Forex market operates continuously is due to the time zone difference between trading centers around the globe. When one international trading center closes, another opens soon after. It creates a continuous chain of trading sessions. At the same time, there are times during the day when the markets may overlap. This often increases trading volume. Therefore, traders globally can place trading orders anytime they wish.
For example, when Asian markets are closed, US markets are open. When the US market closes, the Australian market opens again. This forms a continuous series of trading sessions. Each trading session brings its unique characteristics. The transitions between them create interesting things and can be explored in the market.
Coincidence of forex trading time frames
The ideal time for forex exchange trading hours is when there is an overlap between trading sessions. During this time, volatility in the market increases, providing many opportunities to profit. Here are some important Forex exchange trading hours :
- London/New York (7:00 p.m. – 11:00 p.m.): During this time, when the London and New York sessions overlap. At this time, the trading market becomes the most exciting. More than 70% of all transactions take place here. Especially with currency pairs like USD and EUR, creating many profit opportunities.
- Sydney/Tokyo (6 am – 1 pm): Although not as exciting as when the London and New York sessions overlap. This period still offers attractive trading opportunities with high price fluctuations. The EUR/JPY currency pair is an ideal choice during this period.
- Tokyo/London (1:00 p.m. – 2:00 p.m.): Due to the overlapping time between the Tokyo and London trading sessions, it only lasts for 1 hour. This period has fewer trading events than other overlapping periods. However, if you want to trade the EUR/JPY currency pair, this is still a good opportunity.
Most importantly, pay attention to periods when trading sessions overlap. This is when the market has high liquidity, creating conditions for exciting transactions. However, it is also important to note that this comes with great risks. Managing leverage and trading volume is key to effective trading execution.
Summary of Forex exchange trading hours according to US time zone
The foreign exchange market is divided into 4 main forex trading sessions. It represents the four leading financial centers in the world. Including New York (USA), Sydney (Australia), London (UK), and finally Tokyo (Japan). Each session runs for approximately 9 hours. The opening/closing times of each session in each season are also different. Below are popular forex trading sessions in the US time zone:
Forex trading hours in Sydney – Australia
The Australian session (Sydney session) is the Forex exchange trading hours that open the trading week in US .
According to US time, the Sydney session opens at 5 am. It ends at 14:00 during the summer-autumn season (from April to October). During the winter-spring season (from October to the end of March next year), opening time takes place at 4 am. Then closes at 1 pm.
Since the Sydney session opens quite early, it usually proceeds peacefully. At this time there is not much excitement and strong fluctuations. Therefore, it is called the Pacific session. During this time frame, the Australian Dollar (AUD) is often traded most strongly. To take advantage of opportunities during this time, traders often choose currency pairs that contain the AUD currency. Consider AUD/USD or NZD/USD. These pairs have high liquidity and greater volatility than other currency pairs.
Forex exchange trading hours Tokyo – Asia
Tokyo session, also known as Asian session. This is the time when trading opens one hour after the Australian session. According to US time, the Tokyo session opens at 6 am and ends at 3 pm. Session hours do not change depending on the season of the year.
In general, Forex exchange trading hours in Tokyo largely coincide with Sydney trading hours. Once the Tokyo session gets underway, the market becomes a bit more active. However, it remains peaceful in the morning.
Ideal currency pairs to trade during these hours are those containing the Australian Dollar (AUD) and Japanese Yen (JPY). Although the JPY currency pair also received great attention. However, its liquidity is not as high as the AUD currency pair.
London – Europe forex trading session
According to US time, the London session opens from 14:00 to 23:00 in the summer. For winter, it will start from 3:00 p.m. to 24:00 p.m.
The London session is an extremely active trading period and has the largest trading volume compared to other sessions. The movement of money in Europe is huge. At the same time, the opening time of the London session is also the time the Tokyo session ends. The combination of European traders entering orders and Asian traders closing orders creates strong volatility in the market.
To trade effectively during this time frame, you should choose typical currency pairs containing the Euro (EUR) and British Pound (GBP). Includes GBP/USD, EUR/USD.
Forex trading time New York – USA
According to US time, the New York session (US session) is open from 7:00 p.m. to 4:00 a.m. the next morning in the summer-autumn season. And also starts from 8:00 pm to 5:00 am the next morning in winter-spring. Therefore, the trading week on the forex market will end at 4 am on Saturday (summer) or 5 am on Saturday (winter).
When the New York session begins, the forex market often becomes active. This is considered an exciting forex trading session right after the London session. Important economic and political information is often announced at the beginning of the New York session. Aim to create strong fluctuations in this time frame.
Most US investors often choose these Forex exchange trading hours because their free time is mainly in the evening. The most traded currency pairs are those that contain major currencies. These include USD, EUR, GBP, JPY and AUD.
Best forex trading time frame
The advantage of forex is its ability to operate continuously 24 hours a day and 5 days a week. However, this advantage also poses challenges for many investors. They sometimes find it difficult to determine which time frame is the most suitable for trading and most favorable for making profits. In the content below, we will go into details to evaluate objectively.
It can be confirmed that the periods overlap between trading sessions. Especially between the European session and the American session. These are often the times that bring the most opportunities and profits to traders. During this period, the market often has high liquidity, and trading activities are vibrant. Both buying and selling forces are strong, creating positive price fluctuations.
In particular, investors should focus on the period from 7:00 p.m. to 11:00 p.m. (summer) and 8:00 p.m. to 11:00 p.m. (winter). These are often the best times to seize opportunities and make big profits.
See more: Instructions for registering an XM account correctly
What is the best day of the week to trade forex?
Differences in the forex market not only appear in daily trading sessions but also affect the days of the week. So, which day of the week is considered the best choice among Forex exchange trading hours? Below is the detailed answer:
Monday:
- The market often starts slowly and is less volatile.
- Events and news are fewer than on other days of the week.
Tuesday, Wednesday, Thursday:
- These days are often exciting days with a lot of news being announced.
- The forex market has become dynamic and has many trading opportunities.
Friday:
- Mornings are often bustling with activity as traders prepare to close orders before the weekend.
- In the afternoon there is usually a gradual decrease in trading volume.
Advice for investors:
- Scalper: Best to trade on weekday mornings, except Saturday and Sunday.
- Medium-term investors (swing traders): Limit trading on Mondays because the market is less volatile, and avoid trading on Fridays to reduce risks.
Conclude
The above article Learn Forex Trading provides detailed information about Forex exchange trading hours in US time. At the same time, we will mention the most optimal Forex exchange trading hours of the day. Hopefully, this information will help people choose the forex trading time frame that best suits them personally. At the same time, it brings the highest investment efficiency. Wishing everyone success in their trading!
Frequently asked questions
How many trading sessions are there in a day?
The forex market is divided into four main sections: Eurasian, Asian, European, and American, creating a continuous 24-hour cycle from Monday to Friday.
Which trading session is the most important?
The London and US sessions are often considered the most important as they are highly liquid and overlap with each other, creating positive trading conditions.
What time frame is suitable for scalping?
Scalping traders often look for trading opportunities during short time frames, such as the London and US sessions, when the market is active.