Unlike the Stock Exchange markets, the Forex (FX) market is an around the clock market which opens to trade at 5PM EST on Sunday as Auckland, New Zealand comes into play, and it closes at 5PM EST on Friday as the New York session closes for the week. The FX market is therefore basically open 24 hours a day for a whole 5 days of the week. Look at the map above to see which time zone may be the most appropriate for your own trading day.
The FX trading day itself is typically split into 3 key trading sessions: the Asian session, the London/European session and the US session – with the European/US overlap generally providing the greatest exposure to market volatility & price action.
Timing is important in currency trading. To devise an effective and time-efficient trading strategy, it is important to note the amount of market activity around the clock in order to maximize the number of trading opportunities. Price of a currency is always dictated by liquidity i.e., demand and supply and it also depends on the geographical locations and macro economic factors.
The world stock exchanges typically have set hours when the physical shares of individual companies can be bought and sold. Some equally operate what is known as ‘extended-hours trading’; aka ‘pre-market’ or ‘after-hours-market’ trading. Futures exchanges also allow for trading in underlying instruments that follow the movement of Stock Indices outside of normal trading hours.
Further information on both these topics can be found at:
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