Although currency trading is open 24 hours a day except on weekends, there are Forex trading hours that are most suitable for making trades. Understand that while some currency markets close in some parts of the world, other currency markets open in other parts of the world. This gives a trader a variety of options on hours to trade Forex.
Most suitable hours
The best time to trade is when currencies are traded in large volumes. These are the hours where currency markets that are open overlap. A currency market is open usually from 8 AM to 4 PM. Heavy Forex trading occurs when more currency markets are open. These hours are the best times to trade because there's a bigger chance of gaining or losing pips. When there is a big difference between selling and buying price, there is also a big chance to earn bigger profit. Therefore, it is important to know what time the markets are open.
Trading hours
The New York market opens at 8 AM and closes at 4 PM EST. Australia then opens at 5 PM and closes at 1 AM EST. Tokyo opens at 7 PM and closes at 3 AM EST. Singapore opens at 9 PM and closes at 5 AM EST. Frankfurt opens at 2 AM and closes at 10 AM EST. London opens at 3 AM and closes at 11 AM EST.
The hours mentioned above are the trading hours of major currency markets all over the world. If you graph these hours, you will notice that some of them overlap at certain hours. These hours are the best times to trade because the exchange of currency occurs in large volumes. For example, the New York and London markets are both open from 8 AM to 12 AM EST. Sydney and Tokyo are also both open starting 7 PM until 2 AM EST. The London and Tokyo markets also overlap for just one hour starting from 3 AM to 4 AM EST.
The Bottom Line
Good timing is important in every trade. If you want to make more profit then trade during hours where market hours overlap each other. Just be careful because it is also risky to trade during these hours. Although a lot of money can be made from every trade due to the heavy volume of currency being exchanged, there is an equal chance of losing big money as well.
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