Forex Market Hours
The Forex trading market is unlike some of the other trading markets. The Forex market stays open and moving twenty four hours a day.This allows the traders to trade at any time, and the long waits until the market opens do not happen in Forex like they do in the stock market. One thing that successful traders will learn, however, is the right, or optimum, time to make the trade. This aspect of the market hours is very crucial to a market trader in terms of success. The Forex market may stay open twenty four hours a day but it is better to trade when the market is active, as there is more activity and chances to make a profitable trade during the active times of the market.
An active market translates into a bigger volume of trades. This means that there are more active currency moves when the market is active, and this will create a better chance of catching a trade that makes a profit. When the market is very calm and slow, most Forex traders consider it a waste of their time to trade. The Forex market is open around the clock, and this is because the four major Forex markets are open at different times. The major markets are the New York market, the Tokyo market, The Sydney market, and the London market.
The New York market is open from eight in the morning to five in the afternoon Eastern Standard Time. The hours for the Tokyo market are from seven in the evening to four in the morning Eastern Standard Time, and for the Sydney market they are from five in the evening to two in the morning Eastern Standard Time. The London market hours are from three in the morning until noon Eastern Standard Time. This means that both the New York and London markets are open from 8 a. until noon EST, the Sydney and Tokyo markets are open from 7 p. until 2 a. EST, and the London and Tokyo markets are open from 3 a.
until 4 a. EST. The times when these markets overlap, and are open at the same time, there is the highest volume of trades and the best chance to realize a profitable trade. The Forex market is open twenty four hours a day, but specific markets have set trading times. The four main markets in Forex are London, Tokyo, New York, and Sydney. By understanding the specific hours each market trades, a Forex investor can make a better profit from trading currencies. The times that are overlapping between these markets offer the best chances for great trades in the Forex market. This is because the market is more active with a greater volume of trade, which translates into more profitable trades.
Copyright © 2007 Joel Teo. All rights reserved.
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