FOREX Market Hours

The foreign exchange currency market (FOREX) is open 24 hours a day, five days per week.

It is important to realize what this means with regard to the time zone where you reside.

The following information is based on New Zealand Standard Time which is equivalent to Greenwich Mean Time +12 hours (G M T +12). The times listed below do not account for daylight savings time. It is assumed that if you are savvy enough to consider trading FOREX, you already know how to tell time.

The FOREX market is divided into four major trading sessions.

The Sydney session runs from 9 AM until 6 PM local time.

The Tokyo session begins at noon and concludes at 9 PM.

The London session opens at 7 PM and closes at 4 AM, and the New York session begins at midnight and ends at 9 AM, at which time the whole cycle begins again.

The reasons it is important to know FOREX market hours are twofold.

The first reason is that many experienced FOREX analysts believe that the first hour after a major market opens will give a decent indication of how that trading session will proceed.

Remember, the FOREX market can be volatile and unpredictable, so the truth of this statement must be experienced to be appreciated.

Observe for yourself and form your own conclusions.

The second and more important reason for awareness of FOREX session hours is that price activity, trading volume and liquidity are greatest during the hours where trading sessions overlap.

For someone living in New Zealand, the first of these overlaps occurs beginning at noon when the Tokyo session begins, ending at 6 PM when the Sydney session ends.

There is a gap of one hour between when the Sydney session ends and the London session begins at 7 PM. The Tokyo and London sessions overlap for two hours. This is prime trading time, since the London session accounts for the lion’s share of daily FOREX trading volume.

The implications for traders based in or near New Zealand Standard Time are fairly obvious.

A new trader, one just beginning to test the FOREX waters, can come home from a conventional job, relax and have some dinner, then spend a relaxing couple of hours from 7-9 PM exploring simulated or actual trading when the market is at its peak.

Someone who doesn’t mind staying up a little later in the evening can wait until midnight and catch the last four hours of the London session along with the first four hours of the New York session.

Traders based in New Zealand are ideally positioned to participate in the FOREX market at convenient times that mesh well with most people’s lifestyles, while at the same time being assured of typically lively price activity and a large population of market participants.

Now that you know the reasons for having a firm grasp on FOREX market hours, you can plan your FOREX trading sessions around your schedule in a way that is efficient and works to your greatest advantage.


For more information on Forex market hours be sure to visit LucrorFX today!

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