So far, in the previous articles of our Forex course we have commented on various aspects of “how to” trade in the Forex market. But another important lesson you must learn is “when” to trade in the Forex market.
While the Forex market is open 24 hours a day, that doesn’t mean you have the same activity all day long.
In Forex, you have the possibility to make profits when the market moves up and even when it moves down. However, you are going to have a lot of difficulty making money when the market is barely moving. This lesson will help you determine the best times of the day to trade forex.
Forex Market Hours
Before looking at the best trading hours, we should point out that Forex can be divided into three main trading sessions: The Tokyo session, the London session and the US session. Below is a table of the opening and closing times for each session:
You can see that between each session, there is a time period in which two sessions are open at the same time. From 8:00 to 9:00 GTM the Tokyo and London markets are open, and from 13:00 to 17:00 GTM the London and US markets are open. Naturally, these are the most active hours in the market, as there is greater volume when two markets are open at the same time.
As you can see, the London session is the one that generally shows the greatest movement.