The best forex broker in world knows the right time to trade. Worldwide hours of forex trading: From Sunday evening until Friday night, the currency market is open 24 hours a day. This is because you can trade at any time of day, thanks to the numerous foreign time zones. These three places host significant trading sessions:

• Tokyo (Asian session)

• England (European session)

• New York, USA (North American session)

What time does the currency exchange market open?

During the fall and winter, the Tokyo session is open at 12 a.m. and ends at 9 a.m. UK time. It is one of the largest forex trading hubs on the planet, with over a quarter of all transactions occurring during this session. During the Asian session, there will probably be increased activity in yen-containing currency combinations and Asia Pacific currency pairs like AUS/USD.

The London Foreign Currency Market opens at 8 AM UK time and handles daily exchange transactions worth an estimated £2.1 trillion. There will likely be smaller FX spreads during the London session because there is more liquidity during that time. On the other side, the London session is also marked by significant volatility, which frequently makes it the best time to trade the major currency pairs because they have lower spreads due to the high volume of trades. This meeting concludes at 4:00 PM.

The New York session follows, starting at 1 p.m. and lasting until 10 p.m. UK time. The New York forex market hours session opens with extra liquidity because it overlaps with the preceding London session. There is frequently little activity as the trading day draws to a close toward the end of the session.

The Sydney foreign exchange market, which is open from 8 p.m. to 5 a.m. UK time, completes the 24-hour forex trading cycle.

When should one trade foreign exchange?

The busiest periods of the market, or times when the most trades are executed at once, are theoretically the best times to trade forex. A situation like this offers lots of liquidity and narrower spreads. Therefore, when open marketplaces overlap, it is the best moment to trade. The sessions in London and New York have the most overlap.

Although there may be a tighter spread initially due to the increased volatility during this period, significant economic news announcements could cause the spread to widen. High volatility, however, might be advantageous when trading in the FX market. For more information on regulating volatile markets, see our risk management guide.

The busiest market of them all, especially around the middle of the week, is the London session. However, Friday trading has lower volatility and less liquidity due to fewer traders. Additionally, it depends on the currency pair you are trading; for instance, trading on JPY might be more appropriate during the Asian session. Utilize a spread betting or CFD trading demo account to practice trading currencies.

Which currency pairs are the most volatile?

The liquidity of the currency pair determines volatility, which is indicated by how much the price fluctuates over time. This affects the spread because the number of pips used to represent price movement. There will be some pairs that naturally have more volatility, but many different factors can also contribute to the volatility of certain pairs. The volatility of a currency pair can change during the day depending on the forex market hours, either increasing or decreasing volatility.

Forex pairs with the highest volatility include:

• AUD/JPY

• NZD/JPY

• AUD/USD

• GBP/AUD

When opposed to exotic currency pairs, major currency pairs often have lower volatility since higher liquidity tends to result in reduced volatility. Because prices in more developed nations are often more stable, currency pairs from those nations tend to have lower volatility. Additionally, there is less demand for and supply of currencies from emerging markets. Learn more about the currency pairs that are exchanged the most globally.

What causes forex volatility?

Significant news events, like Brexit, can increase volatility and spreads in the FX market. Increases in interest rates or sharp increases in the price of commodities can also affect price variations.

Trading low liquidity pairings carries a higher level of risk by nature, so it is only advised for more seasoned traders who have done their homework and have a risk management plan in place. In our guide to the best advice for FX traders, learn more about the advantages and risks of forex trading.

Trade FX during UK market hours.

On our recognized trading platform*, Next Generation, learn about forex trading with spread bets and CFDs. On more than 330 foreign exchange pairings, including major, minor, and exotic crosses, we provide competitive spreads and margin rates.

Long-term forex trading

Forex forwards contracts enable longer-term foreign exchange trading. With the help of these contracts, a trader can decide with their broker on a future price and execution date without having to pay any holding costs. In this case, your wager would be on whether the value of the basic quote would rise or fall in relation to the other.