Which Are The Best Forex Market Hours?
Generally, trading hours for FX extend from Monday morning in Sydney to Friday afternoon in New York. In this time zone, the market will be open at some places throughout the world at every hour of the day or night.
Nevertheless, it is not a 24 X 7 market as it does closes on weekends. More accurate working days are 24 X 5. If a trader wants to know the accurate time that the markets function, he needs to look at the time zones. This is very easy when expressed in UTC (Universal Coordinated Time).
This is the official time in Greenwich and it is the spot of zero angular distance on the world. Therefore, the conventional FX market hours are 22.00 Sunday UTC to 22.00 Friday UTC.
UK is 5 hours ahead of New York and therefore, the global forex market starts and ends at 5 pm Sunday/Friday in New York, 2 pm on the United States West Coast, 8 am Monday/Saturday in Sydney and 11 pm in Germany.
If the traders start to take summer time daylight saving into account, then things will get a little complicated. This creates one hour difference in nations that notice it. But, daylight saving functions in a different manner in the Southern Hemisphere Nations such as Australia which have summer time from September to market instead of March to September.
Forex market hours of various national markets are the following;
Sydney: 10pm to 7am UTC
London: 8am to 5pm UTC
Tokyo: 12midnight to 9am UTC
New York: 1pm to 10pm UTC.
With these time zones, it does not mean that trading would be good at all of these times. Even after a major market open, the prices can look unpredictable and very volatile. When the financial markets wake up in the above cities, many traders stay out of the forex market for around an hour, four times a day.
By a long way, US dollar is the most traded currency and it is the nearest rival of Euro. It indicates that events in the USA have a big impact on the fiscal markets than events in other nations.
New York market seems to falls down up to 3pm local time and if a trader involves in a US dollar pair, it can be the best time to stop trading for the day. Thus, in theoretical means a trader can do business 24 hours a day from Sunday night to Friday night.