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Forex trading hours: Deciding factor for success

As a trader, you surely know that the Forex market operates 24/7. But it is not always the golden forex trading hours to enter a trade. If you do not choose the best trading time frame, the profit you earn will be a negative number. Even worse is burning your account. So, when is the Forex trading time frame ripe? Let’s find out with Learn Forex Trading in the article below.

What does the term forex trading hours mean?

Before going deeper into effective trading hours. How will we define the term forex trading hours? Trading hours, also known as Exness trading sessions, are the times of day when the foreign exchange market is open for traders to conduct currency trading transactions. In particular, Forex’s operating time is 24 hours from Monday to Friday. Starting from the Sydney trading session, moving to Tokyo, London, and ending in the New York market.

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When do forex trading hours start?

So when can traders trade? You can conduct Forex exchange trading hours at any time of the day. Forex trading hours are from 22:00 Sunday to 21:00 Friday GMT. In particular, each trading session will last about 9 hours.

Besides operating days, the foreign exchange market will be closed on two weekends: Saturday and Sunday. In addition, there are two days of shutdown: Christmas Day and New Year’s Day. In Winter, forex trading hours will run from 4:00 a.m. Monday to 5:00 a.m. Saturday. In contrast, summer will be open from 5:00 a.m. Monday to 4:00 a.m. Saturday (GMT +7). Thereby, we can see that the Forex market operates continuously, due to the time zone difference between countries. This helps traders to place orders at any time frame they want.

Today’s main Forex trading sessions (GMT +7)

Currently, the Forex market is divided into 4 main trading sessions, including:

Main trading sessions on the Forex market today

Australian Session (Sydney): Open from 4:00 to 14:00 in summer and from 5:00 to 13:00 in winter. Because of the early opening nature, this Forex exchange trading hours are not too crowded and volatile.
Asian Session (Tokyo): Open from 6:00 to 15:00. At this time, the Forex trading market is quite quiet and has low liquidity. Among them, traders will be more interested in the USD/JPY and GBP/JPY currency pairs.
European Session (London): Open from 14:00 – 23:00 in summer and 15:00 – 24:00 in winter. This is also an active trading session with typical currency pairs such as USD, GBP, and EUR.
American session (New York): Open from 7:00 pm – 4:00 pm in summer and 8:00 pm – 5:00 pm in winter. This is the second largest Forex trading frame after London. With this time frame, the American session is often used by traders and the most active currency pairs are USD, JPY, EUR, GBP, and AUD.

What is the best forex trading hours framework for traders?

With such a constantly changing number of forex trading hours. What is a good trading time to help traders gain the most profit?

Golden hour for Forex trading during the day

Through the above sharing, traders must also realize the difference between Forex trading sessions. If you are a new trader, to limit capital loss you can choose the Sydney and Tokyo sessions. However, this situation cannot bring traders a large source of profit when the market is less volatile. Therefore, traders should trade currency rates such as USD/JPY, AUD/USD or NZD/USD at this time.

The best Forex trading sessions for traders

If you want to make more profits from strong market fluctuations, choose the European session or the American session. Pay special attention during the Forex trading golden hours from 19:00 – 23:00 in summer and 20:00 – 24:00 in winter. Because this is the time when the London and New York markets operate together. That leads to a very high increase in transaction volume. Create conditions for traders to make quick profits when the market moves quickly.

Forex trading hours gold during the week

Besides the golden Forex trading hours during the day, traders can also apply forex trading hours during the week. Normally, on Monday there is no special news so the market is quite quiet at this time. On the contrary, the Forex trading market will become vibrant from Tuesday, Wednesday, and Thursday. On Friday, the market only fluctuated in the first half of the day and became quiet later.

Instead of having to observe, track, and enter orders every day, professional traders choose tof trade at the most exciting times. Therefore, to minimize risks, traders should enter orders when the Forex market is volatile. At the same time, you must choose a trading time frame that best suits your strategy and style.

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Tips to help traders choose the best time to trade Forex

To help traders avoid the headache of choosing the golden hour for Forex trading during the day. The following are shares on how to choose the most effective forex trading hours for traders:

Tips for choosing the ideal time frame to trade on Forex

The most ideal Forex trading golden hour for scalpers is weekday mornings (except weekends).
Additionally, when two Forex trading sessions overlap, it is also a good time to trade. Because at this time, major events and news often appear that impact volatility and directional movements.
If you are a medium-term investor, you should focus on trading from Tuesday to Friday morning. The market will be active at this time, with strong fluctuations… creating good conditions for traders.
When important events are announced, traders should not make transactions. Because prices will fluctuate strongly and show no signs of stopping.

Some forex trading hours that traders need to avoid

If there are good trading hours, there will certainly be bad times that traders need to avoid, for example:

During the period from 4:00 – 6:00 am, when the New York market is closed, traders should avoid trading.
The Friday trading session on the weekend and the Sunday evening session are also times to avoid. Because trading volume is extremely low, spreads increase sharply.
You should not trade on Monday mornings and Friday afternoons. Because the market at this time is often quiet and boring.
When the US non-farm payrolls are announced but are different from market expectations, trading will bring many risks to traders.

Summary:

Above is what Learn Forex Trading wants to bring to readers when learning about Forex trading hours. Hopefully, this will help traders know how to choose the correct trading time. At the same time, improves transaction efficiency during sessions. Finally, don’t forget to leave a comment below the article to let us know more about your thoughts.