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Clocks of Forex Trading

You want to know the best time for trading, and which times you might want to stay away from it, when the time comes to get that money out there. Since the Forex market is open for 24 hours a day, this does not mean that you have to be on there at all hours that it is open. It also doesn’t mean that the market is active during those times. You have to find out the best times in order to make the money you want. You can make money in two different ways – by having the market move up and by having the markets move down. You will not, however, make money when the market does not move at all.

The market will be still at times, and knowing those times is essential to knowing when the best time is to trade at.

Knowing the Market Hours

You will want to know what the best time in a 24 hour period looks like when it comes to Forex trading. The Forex market has four trading sessions: the Tokyo Session, the Sydney Session, the London Session, and the New York Session. There are open and close times for each of these sessions to occur and trades to happen:

Time Zone EST GMT
London Open

London Close

3:00 AM

12:00 AM

8:00 AM

5:00 PM

New York Open

New York Close

8:00 AM

5:00 PM

12:00 PM

10:00 PM

Sydney Open

Sydney Close

5:00 PM

2:00 AM

10:00 PM

7:00 AM

Tokyo Open

Tokyo Close

7:00 PM

4:00 AM

12:00 AM

9:00 AM

In between each of the sessions above, there are going to be two sessions that are open at the same time. This is from 3-4 am EST. The Tokyo and London markets are open at that time. During 8 to 12 am EST, both the London and New York markets are open during these times. These are some of the busiest times of the market since there is more volume during the time when two markets are open during the same time. During those times of operation, the market participants within the system are trying to buy and sell as they move along. This allows more money to transfer hands.

The major currency pairs during each of the trading sessions, and there is an average pip movement for each and every one:

Pairs London New York Tokyo
USD/JPY 66 59 51
EUR/USD 114 92 76
GBP/USD 127 99 92
NZD/USD 72 70 62
AUD/USD 83 81 77
USD/CAD 96 96 57
USD/CHF 102 83 67
AUD/JPY 107 103 98
EUR/JPY 129 107 102
GBP/JPY 107 103 118
EUR/GBP 61 47 78
EUR/CHF 109 84 79

The European session is usually the one that comes out at the top, with the most movement for the day. The sessions will overlap, and they will also allow you more time to trade.

Forextips.com is committed to educating the forex trader in all aspects of foreign currency trading. Click here to get information on a free forex webinar to help you maximize your success in the forex market.