In this article, we will talk about the forex trading opening time. The time in which the Forex market opens depends on a number of factors. While the trading hours in Sydney and New York are similar, there are slight differences.
Sydney and New York are considered North American, while London is considered European. Listed below are the times in London and New York for each of these time zones.
To determine the appropriate time for your location, visit the respective exchange’s website. Here are some other important things to consider when determining the opening time in each location.
London
The London session is the busiest time of day to trade the currency market and accounts for 35% of daily forex volume. Because of its high volume, trading in the London forex market tends to have reduced spreads, making it an excellent time to trade. Currency pairs trading in the London session include EUR/USD, USD/JPY, and GBP/JPY. The London session closes at 1600 GMT, the same time as the New York session.
After the Asian session, the European session takes over currency market activity. The trading activity in the currency markets in London and New York overlap, and this period offers the highest liquidity for Euro, Pound Sterling, Swiss Franc, and other major currency pairs. The London session opens at 1300 GMT. It lasts for four hours, overlapping with the New York session. When it is open in the London session, liquidity is at its highest.
Most short-term intraday traders tend to trade during the second half of the London session. It is during this time that two of the world’s largest financial centers opened, resulting in a high volume of trading. Furthermore, because of the low spreads, most short-term traders can bag as much as 10 pips per trade. If you have a low-cost trading strategy, trading in the London session is a great choice.
New York
The New York forex trading open time is the same as that of other major financial markets around the world. In addition, the trading day in New York overlaps with the London session, which begins one hour later. As the trading day moves into the evening, the New York session ends and the London session begins. After this, the forex markets take a weekend break, until the next morning when the Sydney session begins. Traders can use these trading hours to determine the best time to trade forex.
The best time to trade is when the New York session opens at 1300 GMT. This overlap is considered the most active part of the day, as there is high activity in the forex markets. The US dollar tends to drive the market, as most news and economic events that affect it are released in the early hours of the New York open. During this time, trading is typically high and liquidity is high, resulting in thin spreads.
The overlap is most important for major forex pairs. Traders will notice that EUR/USD and GBP/USD will experience an increase in activity during the New York session. While London is fully operational, EUR/USD will be significantly quieter. As a result, traders should look for opportunities to take advantage of the overlap. And remember that a trend might reverse just before the end of the session, so it is always good to pay attention to the session’s time.
Sydney
When it comes to forex trading, the open times for both New Zealand and Sydney are similar. The Australian market opens at 8:00 am local time on Monday, while the New York session opens at 5:00 pm ET on Friday. These are the two most active forex trading centers in the world, and their sessions usually last between eight and twelve hours.
However, currency pairs are more active during these times than during other times of the day, and the New York session usually closes at the same time.
While the London and New York sessions are largely similar, the Sydney session is significantly shorter. While the New York session has more liquidity at the start, it usually ends with little movement by the end of the day. Forex trading in Sydney takes place from eight in the evening UK time to five in the morning US time, completing a full 24-hour forex trading loop. It is important to understand forex market hours so you can trade at the right time.
In addition to the Sydney market, the New Zealand and Australian markets also have overlapping trading hours with Asian markets. The Australian dollar is most liquid during the overlap time when Sydney and Tokyo are closed and the other two markets are open.
In addition, the Australian dollar tends to be the most liquid during this time because there are many markets open at the same time. The Sydney session, therefore, offers plenty of opportunities for traders. It is a good time to invest in the forex market, especially if you are based in Sydney.
North American
When is the North American forex trading session open? This depends on your trading style and lifestyle. Typically, markets in the U.S. open at 8 am, while trading in London and New York only opens at 3 am. There are some exceptions, such as daylight savings time and certain public holidays. The trading hours are typically more flexible, though. For example, forex trading in North America is open for 24 hours on Monday, Tuesday, and Thursday.
Currency market activity is most active during the Asian session, when the Chinese, Hong Kong, and Japanese markets open for trading. These countries tend to have lower liquidity levels than those in Europe and Asia.
This makes it a good choice for traders who prefer to trade on the currency pair EUR/JPY. The overlap between the Asian and European sessions is generally one hour and is less volatile. However, there are some advantages and disadvantages to each.
The trading volume in the North American forex session peaks when the European markets close for the weekend. After the Asian session, European dealers return to work and the North American trading volume peaked. This pattern is repeated all throughout the week. In the United States, forex trading activity peaks in the early morning hours, while volatility declines after the European session ends. In Europe, trading activity tends to slow down slightly in the morning after the European session ends.
Australasian session
The Australasian session of forex trading begins at the beginning of the week and ends at the end of the same week. While the trading week starts early for many traders in the United States, it is the opposite in Australia. The time difference is a significant factor. In addition, the market opens at a large gap when the New York market closes and Sydney reopens the next day. The two sessions aren’t equal – some periods see high volatility while others remain thin.
If you want to take advantage of the best times for Australian currency trading, try to trade during overlap periods. This will give you better pip range movement and the highest levels of liquidity. You should avoid trading dormant currency pairs, though. Not all currency pairs will see higher trading volumes during overlap periods. However, some of them will. The best times to trade are usually between 5 PM and 8 AM, as this overlap period allows more trading volume for specific currency pairs.
For the best time to trade, make sure to be at your computer at least a couple of hours ahead of the market. For the most successful trades, you should avoid trading on weekends. As long as you understand the market’s opening and closing times, you’ll be able to take advantage of the best opportunities. For example, the first session of the day begins at 7:00 AM AEST, while the last session closes at midnight.
Europe
When it comes to the timing of Forex trading, it is crucial to pay attention to the European session. This session starts at 8:00 CET and finishes at 9:00 CET. The European session takes over currency market activity once Asian trading hours are over. It is composed of several key financial markets, including the London stock market. As mentioned above, liquidity is often lower in the European session. However, traders should still keep in mind the Asian session’s time, as the European session usually includes a lot of key assets, including the DAX30 index.
The London market opens at 8:00 am UK time. This is one of the busiest sessions in the world. European and British forex markets open at similar times. The European session overlaps the tail end of the Asian session and the start of the US session. Forex trading in New York is also open at these times. In fact, you can even make trades in the European session until late in the evening. There’s a good chance you’ll find the best trading times for your trading style during this time.
The opening hours of the European session overlap with the New York and London sessions. This overlap period is where trading is most active, with the biggest volumes taking place for currency pairs such as USD/JPY, GBP/USD, and Swiss Franc. In addition to these major currency pairs, the European session also includes the Japanese Yen and Euro. Forex traders should carefully analyze the time zone to see which currency pairs perform the best during this period.
Conclusion – Forex Trading Opening Time
Forex trading opening time depends on the country and location you are living in. Refer to the above opening times to know which forex market you would like to trade in.
