Forex Trading Hours

Given the global nature of currency trading, the market is open for business around the clock, 24 hours a day.  It is important for the trader to know the times when the major markets are active and how this can be implemented in their trading.

As a general rule, a specific currency will usually be most active when that particular market is open.  For example, the GBP and its related pairs, while active and tradable 24 hours per day, tends be most active and widely traded during the hours when the London market is open.  Meanwhile the JPY and its related pairs will be more widely traded during the Tokyo business day.

The market hours for the major FX markets are as follows:

London – 3 AM through 12 noon Eastern time (~35% of total FX volume)
New York – 8 AM through 5 PM Eastern time (~20% of total FX volume)
Sydney – 5 PM through 2 AM Eastern time (~4% of total FX volume)
Tokyo – 7 PM through 4 AM Eastern time (~6% of total FX volume)

There are at least two reasons why you should track the major forex market trading hours:

  • The first hour after a major market opens is considered very important and often indicates how the session might develop.
  • In periods when market ‘trading hours’ overlap, liquidity tends to increase because more traders are participating in the FX market.

Forex trading time:

New York opens at 8:00 am to 5:00 pm EST (EDT)

Tokyo opens at 7:00 pm to 4:00 am EST (EDT)

Sydney opens at 5:00 pm to 2:00 am EST (EDT)

London opens at 3:00 am to 12:00 noon EST (EDT)

And so, there are hours when two sessions overlap:

New York and London: between 8:00 am — 12:00 noon EST (EDT)
Sydney and Tokyo: between 7:00 pm — 2:00 am EST (EDT)
London and Tokyo: between 3:00 am — 4:00am EST (EDT)