The Forex market is operational twenty-four hours a day. The four markets: New York, Sydney, London and Tokyo each have specific hours of operation. Since using these hours of operation is key to making money on the foreign exchange, it is vital that you know what the Forex trading hours of each market are.
It is important to note that these listed periods are only in relation to the United States Eastern time zone. The New York market opens at 8am, and closes at 5pm. Tokyo opens at 7pm, and closes at 4am. Sydney runs from 5pm to 2am, and London, from 3am to 12pm.
Since there is little money to be made during the slow period of each of these markets, it is vital to learn when they will be active. For each, the morning hours are a good time, as are the evening. These are periods just before people leave to go to work, and the time just after they arrive home for the night.
One of the best ways to take advantage of active trading is to use the market during hours in which some markets overlap. For many, this is the only time to do business.
These overlaps include the periods where London and New York overlap between 8am and 12pm. Sydney and Tokyo overlaps between 7pm and 2am. London and Tokyo overlap as well. This occurs between 3am and 4am. Again, all of these listed periods are based on United States Eastern time. If you are not on the East coast, you will need to adjust these periods accordingly.
During the overlaps, trading it at it's peak for the day. Though some of these times may occur while you are normally in bed, it may be advantageous to adjust your sleep schedule if possible to accommodate trading during the peak periods.
If not, at least try to trade during the hours when people are at home, and thus increasing the overall trade volume. The value of a commodity will not move much if there is no one online trading it, and these periods are for the most part a waste of your time.
Those new to Forex should take the time to memorize the Forex trading hours before making their first trade. The ultimate goal is to make money, and this can best be done when working the market during the peak Forex trading times.
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