Forex Trading Hours

Forex trading can be an exciting and profitable experience. However, it is contingent upon finding the best hours of the day to trade. While the forex market is open for worldwide trading 24/7, there are certain times of the day and night that are busier and more profitable than others.

The best time to trade forex is when the market is at its most active. The more traders that are active at the time, the bigger the volume of trades and the more opportunities to find good deals and make a profit. The four major forex trading markets are New York, London, Tokyo and Sydney. The New York market is open 8 a.m.-5 p.m. EST, while London is open from 3 a.m.-12 noon EST. Tokyo is open from 7 p.m.-4 a.m. EST, while Sydney's time is from 5 p.m.-2 a.m. EST. By having four markets from which to choose, traders can capitalize on opportunities anywhere at anytime, offering them the chance to find hidden investment gems in the wee hours of the morning.

Within those 24 trading hours there are times considered to be "rush hours." These are hours when certain markets overlap, creating good markets for currencies active in those particular markets. For example, New York and London overlap between 8 a.m.-12 noon EST, while Sydney and Tokyo do so between 7 p.m.-2 a.m. EST and London and Tokyo between 3 a.m.-4 a.m. EST.

When each market opens and closes, traders will hear that particular market is opening or closing at a certain rate. But because these currencies are continuing to be traded around the world, the rates may be very short-lived. Therefore, traders should not expect these rates to stay in place very long. The key to forex trading is realizing that various currencies are constantly needed worldwide to complete business deals, stabilize banks and help grow the economies of numerous nations. A day begins with the opening of Sydney and Tokyo markets, followed by London and New York. No matter the time of day, there is always great potential to make trades that will pay off.