Every single stock place would never come to a halt. Opening time of the forex market opening time means a system which also never stops dealing. Exactly as one major currency market shuts down, the following one opens up. For instance, this is exactly what the Greenwich Mean Time trading clock looks like around the globe:
- between 1pm and 10pm for New York;
- at 10 p.m. trading starts in Sydney;
- the midnight hour starts and finishes at 9 a.m. for Tokyo;
- the cycle finishes in London.
It opens at 8 a.m. and closes at 5pm for the final time.
This enables traders and stock brokers around every globe and every Central Bank on every continent to trade live on-line twenty-four hours a week, 24 hours a day.
Markets are working around the clock, therefore it is very important to be aware of the times when the markets are at their most actively traded.
For instance, take the less active time frame between 17:00 and 19:00 hours North American Eastern time: since the market closes in the NY and before its reopening in Tokyo, there will be trading intensity in Sydney, although with less activity than in the three primary periods (London, American, and Tokyo). So less intensity means financial opportunities are smaller. For traders trading foreign exchange options such as EUR/USD, GBP/USD or USD/CHF, a period between 8:00 and 12:00 could be the most exciting time, as both European and American players can be found on Forex trades.
Other periods to watch out for also include the timing of the announcement of government reports and official economic news. Governments issue precise schedules for announcing such news, but they do not coordinate with the governments of other countries.
It is therefore worth investigating the timing of economic indicators in various major countries, as this coincides with the greatest amount of currency trading activity. This increased activity means more opportunities in terms of currency prices, and sometimes orders are executed at different prices than you anticipated.
As a trader, you have two basic choices: either include news periods in your trading hours to maximize your profits from the more pronounced price swings or deliberately suspend trading during these periods. Regardless of which option you choose, you should take an active position in the event of sudden price movements during news announcements.
Daily operators have the highest levels of profitable activity when the London markets close at about 8:00 GMT compared to the US markets’ closing time at 10:00 GMT. Trading activity is highest when the United States and London Markets operate concurrently from 13:00 GMT to 16:00 GMT.
The following is a summary of an overview of the trading sessions to help you get the most out of the market activity:
- British market trades from 08:00 to 16:00 GMT – the highest levels for EUR, GBP & USD are traded;
- USA trades from 1-2:00 p.m. GMT – top currencies are USD, EUR, GBP, AUD and JPY;
- Asian trading starts at approximately Sunday 10 PM GMT with European trading starting near 9 AM GMT – not suitable for day trippers.
The major selling sessions of the day are in both London and the United States and Asian markets.
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