Forex Market Hours Trading Hours

The London forex market opening hours start at 8am UK time and accounts for roughly 35% of all forex transactions (estimated £2.1 trillion daily). Due to the large volume of trading during the London session, there are likely to be lower forex spreads​ as liquidity is higher. However, the London session is also subject to high volatility, often making it the best to trade the major currency pairs​, which offer reduced spreads due to the high volume of trades.

77.74% of retail investor accounts lose money when trading CFDs with this provider. There are 4 main forex trading sessions with opening/closing hours based on the biggest financial centers. The European session takes over in keeping the currency market active just before the Asian trading hours come to a close. This FX time zone is very dense and includes a number of major financial markets.

High-Volume Forex Trading Hours Can Be Risky

As a result, it is important to have an effective risk management plan in place while trading during different forex market hours. As such, the period of overlap between the two sessions is broader. During these overlapping hours, the market experiences https://www.bigshotrading.info/ higher buying and selling activities. However, the liquidity and volatility subside in the afternoon after the close of the European session. The London session is highly liquid and sees the most significant trading volume in the forex market.

Likewise, Forex doesn’t work on holidays, for example, Christmas, New Year, and Easter. The New York session opens at 1300hrs GMT, while the London session is still running. The New York session also features high activity, especially during the early hours when it overlaps with the open London session. Most movements are driven by the US dollar, which is the most traded currency as well as the most influential london session forex in the Forex markets. Additionally, most news and events that impact the US dollar are typically released in the early hours of the New York open. There is high liquidity and volatility in the early hours during the London/New York overlap (1300hrs GMT – 1600hrs GMT), and most assets feature thin spreads. However, volatility and liquidity tend to decrease during the latter half of the New York session.

Forex, Indices, Gold, Crypto and Share CFDs

Because this is a 24 hour market, there is always at least one active trading session. When more than one market is open at the same time, this increases trading volume and adds volatility which is the degree to which equity or currency prices change. Forex market hours run 24-hours a day during the week, but the market is closed on weekends. This continuous trading is only possible because forexis traded all over the world in decentralised venues. The best time to trade the London forex session depends on what you’re looking for as a trader. However, both volatility and volume tend to peak as the London session opens, during overlaps with the Tokyo and New York sessions, and when macroeconomic data is published. Popular forex pairs to trade during the London session are the majors such as the GBP/USD cross or the EUR/GBP cross.