Something that can be quite tricky to understand for new traders to the Forex market is just how the different markets hours work.
Unlike other markets such as stock markets, the Forex markets hours work differently and this has a large impact on your trading strategies.
Forex Market Hours
Foreign exchange is being exchanged 24/7, but as a trader you have set market hours you can make trades in the market.
Unlike markets such as the stock market where the markets are normally open for a trading day and then closed, the Forex market is open all week.
The Forex market is open five days per week and 24 hours a day excluding certain public holidays.
Stock markets will normally be open for the business day during the particular country's trading session. For example; if looking to trade ASX stock in Australia, then you would have to make trades between 10.00 am and 4.00 pm Australian time.
If looking to make Forex trades you could trade from the start of the week Monday through to the markets close at the end of the week.
Forex Market Hours Map
The map below shows how each world trading session overlaps to form the daily Forex market hours.
At the start of the week the first market to open Monday morning is the New Zealand market. This is followed by the Australian market and the rest of Asia.
The biggest markets around the world then open for the week with London and the US.
The vast majority of the daily markets Foreign exchange gets traded during the period when the London and New York sessions overlap.
These are the two biggest markets and when these periods overlap it will also often see the largest increase in price movement and volatility.
Best Days to Trade the Forex Market
Just because the Forex market is open five days per week and 24 hours a day does not mean all trading days are equal.
Over time some days have historically provided more price movement than others. If price is moving more, then it offers us the potential to make more trades and look for bigger profits.
This is often a large positive for short-term traders or traders who are looking to scalp the market.
Looking at recent history we can see that both Wednesday and Thursday have made the largest movements on the EURUSD offering the potential for more trading opportunities.
Forex Market Hours Clock App
Knowing when the markets are open or closed and if a particular trading session is active can be crucial for your trading.
If you are looking to trade when the market is at its most volatile, then you will need to know when the UK or US session is open or soon closing.
You also need to know if there are certain public holidays coming up that could see the markets closed.
Using a website that has a Forex market clock such as the one at Forex4noobs can quickly help you check the different markets hours and when each trading session is open.
You can also use an app like the ‘FXHours’ app right from your phone to check the markets hours and latest news.