A forex trading hour is determined by market activity. It coincides with the opening and closing of global financial markets. The trading hours also reflect daylight savings time and certain public holidays. Although the trading hours are limited, they are still useful for traders. Traders can place entry and exit orders, as well as stop-loss, take-profit, and trailing stop orders. The trading hour coincides with the opening of major stock markets and important economic data. Before markets close, spreads usually widen, which can trigger orders or margin closeouts.
Most of the largest banks in the world have dealing desks in London. The London session sees the highest volatility and largest number of participants. In fact, it accounts for more than one-fifth of all Forex transactions. It is the second largest FX market in the world, second only to the US market. During the overlap of the London and US sessions, the London market experiences the most activity. As London traders exit the market, activity starts to slow.
It is important to know that forex trading hours vary around the world. However, you should make an effort to focus on the largest market hours. Forex trading hours tend to coincide with economic indicators from major countries. During these times, the prices of currencies are more volatile, and orders may be executed at a different price than you expected. If you can manage your time wisely, you’ll be able to make money no matter where you are in the world.
Although the forex market is open 24 hours a day, different regions follow different trading hours. A common schedule is Sunday morning and Friday night, and these two sessions overlap a little. Despite the fact that the forex market is open all around the world, it is important for traders to know when the biggest sessions are taking place.
Generally speaking, the London Forex exchange closes earlier than the US or European markets. The London session closes at 5pm. However, many traders continue trading during the European, Asian, and Sydney sessions. The New York session opens just before the London session. The Asian session, on the other hand, opens an hour after the London session ends.
The forex trading hour follows the trading sessions in each of these regions. The New York session overlaps with the London session and is followed primarily by Asian traders, European traders, and North American traders. The Sydney market is the smallest trading market and is also open 24 hours. In addition, Sydney and New Zealand also have their own trading hours, and some traders include these trading sessions.
The best Forex trading hour is always changing, but there are certain times of the day that work well for you. It all depends on your lifestyle and trading style. For example, Monday and Friday morning trading hours coincide with the overlap between the New York and London sessions. However, trading hours change slightly in the evening.