By Steve Maenshel

Forex trading hours are the hours when the foreign currency exchange market is open. Even though it may seem that Forex market is always open (it's true in a way), some hours are better for trades, while other hours may actually do more harm than good. Forex trading hours are 24 hours a day, 5 days a week, except for the national holidays. Forex trading hours vary from country to country, according to the hours when main financial institutions of that particular country start and end their business day.

Experts identify four major time zones, whose Forex trading hours substantially differ: Australia, Asia, Europe and America. Forex trading hours in Tokyo begin at 23:00 GMT on Sunday. This starts the weekly trading session. The weekly trading session closes on Friday at 10 pm in Chicago.

Forex market is open at the time of major holidays just as well. However, of course, it's not open in the country where the holiday is celebrated. For example, at the time of a major Christian holiday you can still get foreign currency quotes from the banks of Asian and Muslim countries, and the other way around. Thus, if you feel like trading, you will not have to wait for the holiday to pass in your country; you would just trade with others. It never happens that one holiday would happen in all of the countries all over the world at the same time.

Probably, the only uncomfortable time for your trades is weekends. Even though you can trade on the weekends, the volume of the transactions will be so thin, that you may risk not being able to find a counterpart for your transaction.

Forex is an international currency exchange. This market is continuously working, just like a hive, with zillions of transactions, selling and buying different currencies - Euro, US Dollars, Pounds, Yens, Canadian Dollars and Australian Dollars. You will be able to freely trade on the Forex market within the Forex trading hours.

Forex trading hours were established in order to give employees time for Forex transactions, which is not achievable at the time of active trades, as well as probably to give traders some time to "rest and relax".

The residents of different countries can be surprised that Forex trading hours start and end deep at night in their countries, however you should realize that the foreign exchange market works in different time zones, and thus while in some country Forex might seem to work "at night", in other countries Forex trading hours match regular working hours.

Forex trading hours in the main 4 timezones

Forex trading hours overlap and make up 24 hours of every day, 5 days a week. Trades are also carried out on the weekends. However they are much less active. Below you can take a look at the Forex trading hours in the 4 major time zones, in accordance with Eastern Standard Time:

Tokyo Trading Hours: 19.00 to 04.00

New York, Trading Hours: 08.00 to 17.00 EST

London, Trading Hours: 03.00 to 12.00 (noon) EST

Sydney Trading Hours: 17.00 to 02.00

A trader should get familiar with Forex trading hours, since Forex trading hours are often important to know, in order to gain reliable profits in transactions, rather than getting stuck in thin trades.

About the Author:

By Scott McDonald

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