The forex market is open 24 hours a day, five days a week. The international currency market isn't dominated by a single market exchange but involves a global network of exchanges and brokers around the world.
From New Zealand opening in Asia until the US closes, the market is constantly operating from Sunday to Friday evenings measured in GMT. There are 3 main sessions that gather the most of the volume, and those sessions are related to the main local share markets opening and close: London, New York, Tokyo. During certain hours of the day, these sessions overlap: that's when the market is more active, providing better opportunities.
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.
This map will help you visualize those times of the day.
The current GMT time is high-lighted and shows the markets that are currently open.
- New York & London [12:00 - 16:00] GMT
- London & Tokyo [07:00 - 09:00] GMT
- Tokyo & Sydney [00:00 - 06:00] GMT
Overlapping trading hours contain the highest volume of traders.