Forex market hours are derived from different geographical trading sessions, meaning you can trade around the clock, five days a week. We explain the different forex market opening times, and the best times to trade in the US.
What are the major forex centres?
The major forex centers around the world are New York, London, Tokyo and Sydney, and it is the different locations of these major centers that makes forex a 24-hour market. Forex is an over-the-counter market, meaning that there is no centralized forex exchange. Instead, forex trading is made possible through an international web of banks, brokers and market makers.
Why are the forex market’s trading times important?
The forex market’s trading times are important because, although it is open 24 hours a day, the market is more active during different sessions, or when there is a crossover between two sessions in different geographic locations, which means that spreads are tighter.
However, this increased activity is typically confined to currencies that are found in both locations of a crossover – for example, GBP/USD experiences greater trading volume when both the European and US sessions are open between 8am and 11 am (EST).
The beginning of each trading session is when the big institutions such as investment banks are active, and this is often when relevant economic data for each session is published.