The Forex Market Hours Guide for Traders

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The forex market is a global market where people trade currencies, which means that you can exchange any currency for another one. For example, you can trade USD for GBP in this market.  

There are many reasons to trade currencies, and many people use the forex market daily. The market is supposedly open 24 hours a day (weekends excluded) and is a place where millions of dollars get traded daily.  

Is this market open 24 hours, though? Is there a particular time during the day when the place is blooming? Is there anything I need to know about the forex markets’ busiest hours? The answer is yes, and, according to this, you will be able to figure out when is the best time to use the forex market. This guide can be helpful to both new traders and the more experienced ones.  

We will mention the most critical markets that determine the best times for trading during the day. You need to keep in mind which currency you are trying to exchange, find the appropriate market, and use the hour guide below.  

Let’s go over the forex market hours.  

How does the forex market 24-hour trade work 

Around-the-clock trading on the forex market is possible because the trades occur on multiple large computer networks and international time zones. For example, when the US dollar closes with a specific rate, the New York market closes with that rate.  

At the same time, this currency is still traded around the globe even after the New York market has closed. On the other hand, securities aren’t relevant to international trade and don’t need to be traded outside local business hours. There’s no significant trade demand in these markets, so there’s no 24-hour trade since most traders focus on their domestic markets.
  

forex markets hours

Why are the hours crucial?  

As previously mentioned, the forex market is global, but there are four most important markets: New York, London, Tokyo, and Sydney. These are the biggest markets yet, which means that the perfect time for trading depends on when these markets open.  

The best time to trade is when two of the most significant forex markets hours overlap. It’s the time of the day when most people are on the market worldwide.  

One of the largest markets, the New York one, opens at 8 a.m. EST and is open until 5 p.m. EST. 

The London market opens at 3 a.m. EST and closes at 12 p.m. EST. 

The Tokyo market opens at 7 p.m. EST. The market is open until 4 a.m. 

Lastly, the Sydney market is open from 5 p.m. until 2 a.m. EST.  

With this being said, we can jump into the calculations of the best trading hours on the forex market.  

forex markets hours

The best trading hours  

If you are new to the forex market or want to make more progress, you should firstly think about the currencies you wish to exchange. It’s one step closer to finding the perfect hours to use the forex market.  

For example, if you were to exchange EUR/USD, you would consider using the market when both the New York and London ones are open. You will get more chances if you use the forex market from 8 a.m. to 12 p.m.  

Below, we will present the best hours for each market (when they overlap): 

  • Tokyo/Sydney markets overlap from 7 p.m. to 2 a.m. EST; 
  • London/New York markets overlap from 8 a.m. to 12 p.m. EST; 
  • London/Tokyo markets overlap from 3 a.m. to 4 a.m. EST. 

As we can already see, some markets get more hours than others. For example, the blooming hour for London/Tokyo markets only lasts an hour, so you need to be mindful if this is the market you want to exchange your currency into.  

It is essential to state that most trades occur on the New York market, and most people using the forex market use the USD.  

Note that the best hours solely depend on the market you want to trade your currencies into. We have presented the most important markets and their blooming hours, so you can have a clearer picture of when to use the forex market.  

forex markets hours

Conclusion 

The forex market has gained fame over the last few years. Because of this, it became one of the leading global markets. If you are interested in trading currencies, or if you want to make more progress on the forex market, you have to know the hours when the market is the busiest. We have presented the opening and closing hours for the leading four markets, which determine the best hours on the whole forex market. The first step is to determine which two markets you need. If you want to trade GBP/USD, you want to use the London/New York market.  

The best hours are determined when the working hours overlap-thThe Forex Market Hours Guide for Traders at is when you are most likely to trade the currency you want. This guide can be helpful for both new and experienced traders because it will make your trades easier and faster.  

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