Forex market trading hours
The global currency trading is decentralized — that’s why the Forex market trading hours are subject to mandatory common provisions. That is different to the stock market as well as futures/options markets as they are centralized and subject to local timing of the region where a certain exchange is situated and therefore Forex trading is more advantageous in this context since there are no interruptions.
The continuous trading is due to the global time difference: If the trading day is over in the U.S., a new day has just begun in the Far East and Asia where economic activity has just started for the day.
The fact that forex market trading hours are continuous during the week doesn’t mean that different currency pairs perform the same during different days/times of day. In exotic currency pairs the liquidity is very thin during the evening and night hours (Important to note that we are talking about evening and night in the countries of the currency pair You are trading. For example, If You take currency pairs with Japanese Yen and You are trading from England (England is behind Japan by 9 hours), Yen will be most volatile when it is working time in Japan relative to the time where You are trading from, meaning there will be a lot of buying and selling pressure leading to a lot of market movement starting somewhere after midnight until around 9 o’clock in the morning in England. Putting trades during this period on pairs including Japanese Yen will give You more possibilities for entering and exiting the market increasing Your market exposure and possible profits. Even the most traded currency pairs are much less traded in certain phases of the day.
Forex sessions opening times
The Forex market is open from 21:00 GMT on Sunday till 21:00 GMT on Friday.
In the Asian markets there are traded often currency pairs like USD/JPY and GBP/JPY. Thereby they are very volatile compared to other currency pairs like EUR/GBP and EUR/CHF.
London has the biggest Forex market of the world with more than 30% of all trades. Every well known bank has a branch there and is represented by traders. The most currency pairs have at this time their highest movements.
New York is the second largest forex market of the world. Here are made about 20% of the worlds’ foreign exchange trades. The forex market is most active when the market hours of Europe and USA overlaps
The daily trading volumes are determined by the open forex markets. By overlapping of two global markets like USA and Europe there is a much bigger trading volume. At these times the forex market is more volatile as well. Most active are the currencies when all major forex markets, the US, European and Asian markets overlap.