Forex market is a big advantage compared to other investment markets – which is open 24 hours a day, six days a week. Although the products and the stock market works five days a week (Monday to Friday) during normal business hours, the foreign exchange market is still active throughout the day. If you want to trade 2:00 ET on Monday morning, please do not hesitate to place the trade. If you want to place at 21:00 on Thursday evening, if you have the time to focus on the market, set the online trading systems, many forex trading. Although the market is considered 24-hour market, it is important to know when the markets are really active, and when is the best time to trade in the market.
Actual hours of operation
While the Forex market is open 24 hours a day, every financial center (ie, New York, London, Frankfurt, Tokyo and Australia) have their own operating hours, which are usually from 8:00 – 4: Noon local time. This means that if it’s 8:00 (Tokyo time) on Monday morning, the Tokyo market is open to trade, even if it is 10:00 p.m. ET, on Sunday evening. Therefore, could benefit from trading the forex market on Sunday night in New York City apartment.
So many of the financial world, there are times when two or more overlapping markets. For example, the market in New York and London have overlapping 08:00-12: Noon EST, while in London and Tokyo markets overlap 3:00 to 4:00 EST. Sydney and Tokyo markets also overlapped, 7:00 p.m. to 2:00 EST. These periods of overlap is the best time to trade because the volume (liquidity) is the largest it has.
Other good times to trade
In addition, overlapping periods, it is better to shop at the following times:
• middle of the week (looks like most of the shops)
• The trading hours of the three largest markets – London, New York and Tokyo.
Times to avoid
It is best to avoid the following hours / day:
• Sundays (limited number)
• Friday (unpredictable)
• Holidays (limited number)
• Publication of financial reports (volatility)
The best time to trade is when the market is the most active and therefore has the biggest volume of trades. More active currency moves will create a good chance to catch the trade and make some profit.