Understanding Forex Market Hours
The Forex market operates 24 hours a day, five days a week, providing ample opportunities for trading across different time zones. The market opens on Sunday at 21:00 GMT+2 and closes on Friday at 21:00 GMT+2.
Forex Sessions
- Asian Session: The Asian market starts the trading week, including financial centers like Tokyo, Hong Kong, and Singapore. It typically runs from 09:00 GMT+2 to 18:00 GMT+2.
- European Session: The London market commences during this session, with high liquidity and activity. It operates From 09:00 GMT+2 to 18:00 GMT+2
North American Session: The New York market joins the session, creating significant trading opportunities. It spans from 15:30 GMT+2 to 00:00 GMT+2
Overlapping Sessions
- Asian-European Overlap: Occurs when both Asian and European markets are active, offering increased volatility.
- European-North American Overlap: Known for high liquidity due to the simultaneous activity of European and North American markets.
Market Hours Importance
Understanding market hours is crucial as different sessions offer varying levels of liquidity and volatility, affecting currency pair movements and trade opportunities.
Best Times to Trade
- Peak Activity: Typically occurs during overlapping sessions, providing optimal trading conditions.
- Volatility: Certain currency pairs may exhibit increased volatility during specific sessions, presenting trading opportunities.