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Understanding Market Hours is essential for any trader or investor. Knowing which market is open and the specific trading hours can help traders plan their strategies and make informed decisions. By keeping up to date with the market hours and patterns, traders can maximize their profits and minimize their risks.
Our live market hours map covers 12 major markets, bank holidays, upcoming economic events as well as a live liquidity chart based on forex market liquidity data.
Since the forex market is global, it operates across different time zones. To facilitate trading across these different time zones, the forex market uses Coordinated Universal Time (UTC), also known as Greenwich Mean Time (GMT), as its standard reference time.
The forex market is divided into four main trading sessions, which are the Tokyo, London, New York, and Sydney sessions. Each of these sessions is associated with specific geographical regions and has its own unique characteristics.
The Tokyo session, which opens at 12:00 AM UTC and closes at 9:00 AM UTC, is the first trading session to open. It is primarily driven by the Japanese market, and it is known for its low volatility.
The London session, which opens at 7:00 AM UTC and closes at 4:00 PM UTC, is the largest and most volatile trading session. It is considered the center of the forex market, as it overlaps with both the Tokyo and New York sessions.
The New York session, which opens at 1:00 PM UTC and closes at 10:00 PM UTC, is the second-largest trading session. It overlaps with the London session for several hours, which often results in increased volatility.
The Sydney session, which opens at 9:00 PM UTC and closes at 6:00 AM UTC, is primarily driven by the Australian market and is known for its low volatility.
The forex market operates continuously, and as one trading session closes, another trading session opens. This means that there is always an opportunity to trade in the forex market, regardless of the time of day or night. However, traders should be aware that each trading session has its own unique characteristics and trading opportunities.
The stock market, on the other hand, typically operates according to the time zone where the exchange is located. For instance, the NYSE operates based on Eastern Standard Time (EST), while the TSE operates on Japan Standard Time (JST).
The Forex market is closed on weekends, meaning that no trading can occur on Saturday and Sunday. However, after-hours trading is possible through electronic communication networks (ECNs) that permit traders to buy and sell securities outside of regular market hours.
The stock market is closed on weekends and holidays, and each exchange has its own set trading hours during weekdays.
The forex market is most active when two sessions overlap. During this period, there is an increase in trading volume, volatility, and liquidity.
When both New York and London exchanges are open: between 1:00 PM UTC to 4:00 PM UTC
When both Sydney and Tokyo exchanges are open: between 12:00 AM UTC to 7:00 AM UTC
When both London and Tokyo exchanges are open: between 8:00 AM UTC to 9:00 AM UTC
The stock market is most active during business hours in the region where the exchange is located. For example, the New York Stock Exchange is most active during the morning hours in New York, while the Tokyo Stock Exchange is most active during the morning hours in Tokyo.
The best time to trade Forex depends on various factors such as the trading strategy, market conditions, and personal preferences. However, traders generally consider the London and New York trading sessions, which overlap between 1:00 PM UTC to 4:00 PM UTC, as the best time to trade. During this time, there is usually an increase in trading volume and liquidity, leading to more significant price movements.
The best time to trade stocks also depends on various factors such as market conditions, stock exchange location, and personal preferences. However, most traders consider the first two hours of the stock market opening as the best time to trade. During this time, there is usually an increase in volatility and trading volume.
For example, for US stocks, the best time to trade is during the first two hours of the opening of the New York Stock Exchange (NYSE) from 9:30 AM to 11:30 AM Eastern Standard Time (EST).
