Forex Trading Hours: Is Forex Trading Possible 24/7?

What are Forex Trading Hours?

Forex trading hours are specific time frames in which traders and investors can conduct currency pair trading in the forex market. The forex market is decentralized and is operated at different time periods in different locations. However, investors from any part of the world can participate in forex trading 24 hours a day, 5 days a week.

The forex market involves central banks, commercial companies, investment management firms, hedge funds, retail brokers and investors. It plays an important role in facilitating business across different organizations across the globe. Even though the market enables trading of different types of currencies, seven most-traded currencies are the US dollar, Euro, Yen, GBP, Australian dollar, Canadian dollar, and Swiss franc.

Specific Time Frames of Forex Trading Hours

In the time periods, when the forex market is active, investors can buy, sell, exchange, and speculate on global currencies. The forex market was split into four major regions – North America, Europe, Australia, and Asia, having financial centers in the cities located in these areas. Each region has the following specific time frames for forex trading.

• New York – 8 am to 5 pm EST
• Tokyo – 7 pm to 4 am EST
• London – 3 am to 12 pm EST
• Sydney – 5 pm to 2 am EST

Thus, the forex market is decentralized and operates at different time frames. At any given point of time, at least one market is open, enabling traders to have access to the market around the clock. Sometimes, market time frames overlap, creating large trading volumes.

However, forex trading is unavailable on weekend days. It usually opens in New York City at 5 pm local time on Sunday and closes at 5 pm local time on Friday. Depending on the forex market region and time frame, the forex trading conditions may vary.

When is the Best Time for Forex Trading?

The best time for forex trading is when one trading session overlaps with another one, increasing the overall trading volume. This happens when the Sydney session intersects with the Tokyo session and the London afternoon session intersects with the New York morning session.

Since trading volumes are huge during these overlapping times, the forex brokers provide tighter bid-ask spreads, improving the pricing efficiency and reducing the transaction costs. The London and New York sessions’ overlapping time is the most favorable time for forex trading, accounting for over half of the total forex trading volume.

Institutional traders enter the market during times of high trading volume, further increasing the potential to gain profit from currency price fluctuations. However, the same volatility also increases risk, which makes it important to be careful while trading currency pairs.

The US dollar dominates the list of most traded currency pairs in 2022, with the USD/EUR pair accounting for 23% of the average daily turnover of all currency exchanges. Hence, the best time for forex trading is when the London and New York trading sessions overlap. And, the best currency pair to trade in the forex market is the USD/EUR pair.Here we have listed some of the best crypto to buy before its too late.