The forex market is open 24 hours a day, 5 days a week, providing plenty of flexibility and opportunity for traders. Here at Sharp Trader our general forex trading hours open at 22:01 GMT on Sunday and close at 21:59 GMT on Friday each week. In this period, there are major forex markets open in various countries which all overlap, so you can trade 24/7.
Day Trading Sessions
The best time to trade will depend a lot on your trading strategy and lifestyle. For most people who are trading as a hobby or money-making venture on the side, this will be throughout the day and early evening. With the many trading platforms available, this has made it easier than ever to trade around the clock and on the go, on smartphones and tablets for example.
During the day is when most political and other economic events will be going on and affecting the currency prices. It is also when the most traders will be buying and selling currencies, so this is often the most active and volatile period for trading forex.
Trade Throughout the Night
If you are looking to trade particular currencies, such as the Japanese yen or Singapore dollar, the best time to trade forex may be overnight. The forex market is open 24 hours so you can trade through the night, which may be best when trading Japanese, Chinese, Australian and other currencies which could be most active at those times due to time differences.
This can suit certain traders, if you are freelance, work during the days or nights or it is a full-time profession. These additional forex trading hours also provide many more possibilities to profit and take advantage of any price fluctuations that you would otherwise miss. Generally, the best time to trade forex is when the most markets overlap and the currency pairs you are trading are heavily tied to both. So the GBP/USD pair is best traded between 13:00 and 16:00 GMT for example.
Important Trading Times
There are a few further important forex market hours to be aware of. Like everyone, the markets do have a rest, with annual and national holidays seeing certain ones close for set periods when no trading activity will take place.
It is useful to study and take note of key events listed in an economic calendar as well, such as national budget statement announcements, political elections, changes in interest rates and more. There are many more specific announcements, predicted and unpredictable releases of financial results which also affect currency value.
Be aware of the current and changes to forex market hours when planning your trading strategy.