What is Forex Market Hours?

Understanding Forex Market Hours

Forex market hours are the hours when foreign exchange market participants can buy, sell, trade, and speculate on currencies from around the world. The forex market is open 24 hours a day during the week but is closed on weekends. Change of territory, but the weekend will be tight.

Forex market opens at 17:00 on Sunday. Local time in New York City. Closes at 5 pm on Fridays. and returns to service 48 hours later to start a new week. When the market is open, traders from all over the world can trade in the forex market, although trading conditions may vary.

International currency markets consist of banks, trading companies, central banks, investment management companies, and cover funds as well as rotor and retail currency investors around the world.

The international forex market is not dominated by a single exchange, rather it includes a global network of exchanges and brokers around the world. Forex market trading hours are based on when trading is open in each participating country. Although the periods overlap, it is generally accepted that the following times are busiest for each region:

New York: 8:00 a.m. to 5:00 p.m. EST

Tokyo: 7:00 p.m. EST. at 4 a.m. M. (EST)

Sydney: 3 p.m. at 12 p.m. M. (EST)

London: 3 a.m. to 5 p.m. M. to 11 a.m. M. (EST}

The two busiest Time zones are London and New York The period when these two trading sessions overlap (London afternoon and New York morning) is the busiest period and represents most of the volume traded that day, with trillions of dollars worth, changing hands.

The Reuters/WWM reference spot rate is determined during this period. London local time is used for daily valuation and pricing for many wealth managers and pension funds.

Why is the Forex Market Open 24 Hours a Day？

The foreign exchange market is the largest financial market in the world. Forex trading does not take place at a central location, but between participants via telephone and electronic communication networks (ECN) in various markets around the world.

The market is open 24 hours a day in different parts of the world, from 17:00 to 18:00. m. EST on Sunday until 4:00 p.m. m. EST on Friday. At least one market is open at any given time and there is a few hours of overlap between the market close in one region and the market in another. The international reach of forex trading means that there are always traders around the world who make and meet the requirements of a particular currency.

The currency is also needed around the world for international trade, by central banks and global corporations. Central banks have been particularly reliant on foreign exchange markets since 1971 when fixed currency markets ceased to exist due to the abolition of the gold standard. Since then, most international currencies have been “uncovered” and not pegged to the value of gold.

In the Philippines, since you are also trading foreign currencies and therefore in a global market, you can use the time of day (or night) to your advantage. According to research by Daily FX, a forex trading news and analysis portal, the best time to trade European currency pairs is after business hours or after 7 pm. m. to 11:00 m UK time). It is from 2:00 a.m. to 6:00 p.m in Philippines.

The Reasons for 24-Hour Trading

The ability of the Forex market to trade over 24 hours is due in part to differences in international time zones and the fact that trading is conducted over a network of computers rather than one physical exchange takes place which closes at a certain time. Weather. For example, when you hear the US dollar close at a certain rate, it simply means that that was the rate at the New York market close. Values.

Securities such as domestic stocks, bonds, and commodities are not as relevant or necessary on the international stage and therefore do not need to trade beyond the normal business day in the issuer's home country. Trading demand in these markets is not high enough to justify 24-hour trading due to the focus on the domestic market, meaning few stocks are likely to be trading at 3 am in the US.

1.5 trillion

The amount traded daily in the Forex market.

Europe consists of major financial centers such as London, Paris, Frankfurt, and Zurich. Banks, institutions, and dealers conduct foreign exchange transactions for themselves and their clients in each of these markets.

Each forex trading day begins with the opening of Australasia territory, followed by Europe and North America. When the markets of one region close, another opens or has already opened and continues to trade in the forex market. These markets often overlap for a few hours and feature some of the busiest times in forex trading.