Forex Trading Hours – They Are Not the Same!

Forex trading hours are the hours of the opening and closing of the largest market in the world – the foreign exchange market. Forex trading hours overlap each other in various countries around the globe, and one can say that Forex is always open. However, in reality it is not completely so. Forex market is indeed always open, but not everywhere at the same time. As well as, some trading hours are better for trades than others. Forex opening and closing hours depend on the opening and the closing hours of the main financial institutions of various countries.

Experts identify four major time zones, whose Forex trading hours substantially differ: Australia, Asia, Europe and America. Forex trading hours in Tokyo begin at 23:00 GMT on Sunday. This starts the weekly trading session. The weekly trading session closes on Friday at 10 pm in Chicago.

Forex actually works even at the time of major holidays, because different countries celebrate different holidays on different dates, and many of these holidays do not even overlap. For example: Hindu and Jewish holidays, Muslim and Christian holidays etc. When a holiday starts in one part of the world, another part of the world is “available for trading”. In the time of the holidays in one country, you can still get quotes from the banks of another country etc.

Probably, the only uncomfortable time for your trades is weekends. Even though you can trade on the weekends, the volume of the transactions will be so thin, that you may risk not being able to find a counterpart for your transaction.

Forex is an international currency exchange. This market is continuously working, just like a hive, with zillions of transactions, selling and buying different currencies – Euro, US Dollars, Pounds, Yens, Canadian Dollars and Australian Dollars. You will be able to freely trade on the Forex market within the Forex trading hours.

Forex trading hours are believed to also be present for one simple reason – the employees of various institutions need some time to take care of matters. Frankly speaking, Forex traders probably also need to “relax and get some rest” every once in a while.

The residents of different countries can be surprised that Forex trading hours start and end deep at night in their countries, however you should realize that the foreign exchange market works in different time zones, and thus while in some country Forex might seem to work “at night”, in other countries Forex trading hours match regular working hours.

Forex trading hours in the main 4 timezones

Forex trading hours of various countries overlap one another, together totaling 24 hours each day for 5 days in the row. Thinner trades are also carried out on the weekends. Please take a look at the 4 main time-zones of the Forex trading hours (EST):

Tokyo, Trading Hours: 19.00 to 04.00 EST

New York: 8.00 to 17.00 EST

London: 03.00 to 12.00 (noon) EST

Sydney, Trading Hours: 17.00 to 02.00 EST

Forex trading hours are also an important part of a trading strategy, since the trades will differ depending on the Forex trading hours, which you choose to trade at.

Author Steve Maenshel can help you take advantage of the forex trading hours. For more forex trading information, visit his forex resource center.

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