The FOREX market is open 24 hours a day. The important thing here is to know about the most effective time zones.
The Forex market is the world’s largest financial market. Forex trading is not carried out in a single central location, but is conducted through telephone and electronic communication networks between participants in various parts of the world.
The market is open 24 hours a day, in different parts of the world, from 17:00 on Sunday until 16:00 on Friday. At any given time, there is at least one open market and there is bound to be several hours of overlap between the market close at one region and the other open. The international scope of foreign exchange trading means that there are always traders around the world creating and meeting demands for a particular currency.
Money exchange is always necessary for international trade as well as for central banks and global businesses around the world.
Although the time zones overlap, the generally accepted time zone for each area is as follows:
New York 8am to 5pm EST (1pm to 10pm UTC)
Tokyo 7pm to 4am EST (12am to 9am UTC)
Sydney 5pm to 2am EST (10pm to 7am UTC)
London 3am to 12 noon EST (8pm to 5pm UTC)
More activities create more possibilities…
The two busiest time zones are London and New York. The period in which these two trading sessions overlap (London afternoon and New York morning) is the globally busiest time interval and accounts for most of the $ 6 trillion daily market trading volume. This is the period when the Reuters / WMR benchmark spot is realized. Again within this time interval, the exchange rate is determined.