Forex Market Hours

See forex market trading hours at a glance. Check at what time forex markets open and close in London, New York, Sydney or Tokyo. Your time zone is adjusted automatically. National bank holidays and weekends are taken into account.

The Big Market Timing myth Everyone Keeps talking About

Have you ever Googled this. When is the best time for forex trading? If you do, you will notice most of the resources are stating the similar information, which is during the London and New York overlapping and any other times of high market volatility. 

It sounds so nice, simple and promising. But guess what?

A research study of 24 million real trades showed another surprising fact – this approach is actually wrong for the large number of traders. It turns out that most traders are actually range traders who could increase their likelihood of success from 47% to 55% if they traded during lower volatility times instead of high volatility periods.

Contrary to what others may tell you, there is NO universal best time for trading! The best times depend on what type of trading you are planning to do. Times of peak market volatility might be good for some strategies and not so good for others.

There are three major types of forex trading strategies:

  1. Range trading
  2. Breakout trading
  3. News trading

And here are the appropriate best trading times for each of these trading types:

  • If you are a range trader then you should trade when the markets are less volatile. Also, you should avoid trading when economic data is coming out. The best time for range traders to trade is during the Asian (Tokyo) session.
  • Breakout traders are the ones who can benefit from volatile markets, so the best time for breakout trading is during the famous London/New York overlap, and also during the opening hours of the London session.
  • News traders should obviously time their trades around news releases. The more volatile the news the better. Usually, the biggest moves are created when the US data comes out. Why? Because the US dollar plays a role in just under 90% of all forex transactions (88% for the US dollar against 31% for the Euro and 22% for the japanese Yen in 2016 according to BIS report). The most volatile news report for the US is the NFP (Non-Farms Payroll). The NFP is usually released on the first Friday of every month at 8:30 AM New York time.

The Worst 3 Times to Trade Forex

Certain times can be especially challenging to make money in the forex market. These times include the days before, during and after a major international holiday, such as Christmas or New Year’s. Major bank holidays in the United States, the UK or Europe can also adversely affect trading volumes, often leading to sharp moves in thin markets that can trigger Stop-Loss orders.

For most traders, the following are among the worst times to execute forex trades:

  • The Witching Hour. The loneliest and scariest time in the forex market is when the sun is just rising in Tokyo and traders in Sydney are drinking their first cup of coffee. The time between the New York close and the start of trading in Tokyo has always been a time when investors avoid trading if possible. During these two hours, forex trading volumes can decrease to just 2% of peak turnover. Thus, liquidity is super low. Consequently, the spreads get very high and any transaction completed during that period can influence the market disproportionately. It is during this time that many stop-losses get triggered and flash crashes happen more frequently.
  • Sunday Afternoon Opening. The market opening on Sunday often carries an element of surprise, especially if a major geopolitical event happened over the weekend. Forex currency pairs tend to gap up or down during the start of the Sydney session. Also, dealing spreads are typically so wide that you would usually be wise to wait at least until the Tokyo opening to get a better idea of what the market is like.
  • Wednesday Rollover. In the middle of the week, there is a tricky rollover commission that surprises many novice traders. What is a rollover? If you hold a position open on a weekday night, normally your broker charges or adds an interest rate to your account. This interest is called a “Rollover”.