June 24, 2017

Forex market trading hours

Money doesn’t grow on trees, a famous adage goes. But the closest you can come to having a money farm is investing in the Foreign Exchange Market, or Forex. It is a very large financial market, Where stock exchanges are performed between powerful countries. By investing as little as $250, a participant can expect satisfactory profits as long as he plays his cards right.

The basic tenet of any stock market exchange is to buy low and sell high. The more times you buy low and sell your stocks at a higher price, the bigger your profits. Thus, the goal is to buy at a profit and sell at a profit, AS MANY TIMES AS POSSIBLE.

But how can you do it? One very important factor that most beginner players usually ignore is the FOREX market trading hours. You have to remember that the FOREX involves the exchange of stocks among countries, in trading markets located in different cities worldwide. This means overlapping time zones: while one market goes off to sleep, another market wakes and begins to trade. There is no point in trading with another country if their market is asleep, there’s nobody to trade with. Therefore, you can make the most number of profitable trades if you make your move when at least two markets are awake at the same time.

Note that FOREX market trading hours start at Sunday 5pm Eastern Standard Time [EST], and trading goes on until Friday at 4pm EST. That’s 5 days of nonstop trading. The trading starts in New Zealand, then Australia, followed by Asia, Europe, and finally America. The United States and the United Kingdom alone accounts for more than 50% of all FOREX trading, so it is best to focus on the activity of these two major markets.

Almost 60% of New York transactions occurs during the morning hours, when European markets are also up and running. The New York market is open from 8am to 4pm EST, while London runs from 2am to 12 noon, EST. Great Britain is open for business 3am to 11 am EST. Note that the Asian market is also a formidable trading force that should not be ignored, so it may be worthwhile to know that the Tokyo market is open 8pm to 4am EST.

Based on these schedules, it is clear that the heaviest trading between Asian and European markets would occur from 2am to 4am EST, when their time zones overlap. There should also be heavy trading between European and North American markets from 8am to 12pm EST.

So keep these schedules in mind before you make a trade. By taking into account the FOREX market’s trading hours, you raise your chance of gaining even better profits from your investments.