The forex market is open from eight in the morning to four in the afternoon, with the most active currency pairs trading during the first four hours of trading. During this time, the EUR, GBP, USD, and JPY are the most active currency pairs. Trading hours are synchronized with the Asian and European trading sessions.
The most active forex trading sessions are during the overlap of the London and New York trading sessions. During this time, more than 50% of trading volume takes place. Trading volume for currencies such as EUR/USD and AUD/JPY will be the highest during the overlap between the two sessions. For this reason, traders should focus their attention during these trading sessions.
Although the forex market is open twenty-four hours a day, it has different trading hours. During the peak trading hours, there are a large number of trades, creating a large volume of trading. Traders should use an online currency time zone converter to determine the best times to trade.
Trading hours on the FX market may be subject to change because of the release of major economic indicators. This means that trading activity will be greater, which may lead to big differences in currency prices. As a result, traders may want to consider news periods in their trading hours or suspend trading during these periods altogether.
The European (London) market hours start at 08:00 GMT+2, with the London market starting at 01:00 GMT+2. The London market is the most active in the world. It also boasts the largest volume. Trading in London tends to be volatile due to the fact that more market participants are available during this time.