What Are The Best Times To Trade Forex And For What Reasons?

Exploring Forex Trading and Markets

There are many elements of forex trading that make it both unusual and highly desirable, but one of the most interesting is the fact that the market is open almost constantly.

Whilst it is not open 24 hours a day, seven days a week, it is open for five and a half days per week, meaning that regardless of when you trade and where you live, there is always an opportunity to invest, buy and sell.

This is wholly unlike the rest of the financial markets, which typically have very limited trading hours that require traders to either focus their investments into just a few hours of the day or to diversify across various continental markets.

It also means that as long as you have the prop firm funding to do so, you can invest whenever you like at any hour of the day. But should you?

Whilst you can invest whenever you like, you do not necessarily have to, and there are points during the day when trading activity and volatility are at its peak, unlocking opportunities for day traders, short-sellers and long-term investors alike.

Here is why forex trading hours are so unusual, what rookie traps to avoid and when you should trade to make the most of the market.

What Makes Forex Trading Hours So Strange?

Forex is often characterised as a 24-hour market that outside of a day and a half at weekends is always moving, but it is perhaps best to think of the forex market as four separate markets which overlap based in four separate markets

In order of opening times, here are the four main forex markets:

‍

Sydney, Australia.

Tokyo, Japan.

London, England.

New York, United States of America.


Generally speaking, this means that there is market activity at any hour of the day; however, certain currency pairs will only be traded at certain times, and this is where one of the most common rookie mistakes in forex is commonly made.