Forex traders all know the Forex market website is open five days a year, twenty-four hours aday. This gives the illusion that all traders have the same chance to profit, regardless of when they trade. It is in fact not so. Forex traders will experience varying levels of volatility and profitability depending on what time they trade. It is important for traders to understand this, and to choose the best times to conduct currency trades.
Why traders tend to be active during Forex market hours?
The most experienced traders prefer to trade at the peak of market volatility. Forex trading during active hours increases your chance of success. The slow market is not a good time to invest. In this case, trading at times when trading volumes are low makes it difficult to identify a trend for your order. In order to understand how important hours are in the Forex markets, traders have to be aware of them.
What should Forex traders know?
Forex traders need to know all the important Forex trading hours so they can choose when to invest. Here are a few of the most important Forex hours for traders to know.
Tokyo Opens at 7:00 PM to 4:00 AM Eastern Standard Time
New York Opens at 8 am to 5 pm Eastern Standard Time
London opens between 3:00am and 12:00 noon EDT
Sydney Opens at 5:00 PM to 2:00 AM EST
What Forex traders should know about Forex trading hours
Forex hours are governed by some universal rules that traders all over the world follow. These rules are essential for traders who want to make the best use of their Forex time.
Forex Trading starts in New Zealand. Australia follows, followed closely by Asia, Europe and America. Tokyo’s market is usually the busiest, followed by New York and London. Sydney follows. Forex is most volatile during the time when the markets overlap. Traders pay special attention to this period.