Forex market hours are derived from different geographical trading sessions, meaning you can trade around the clock, five days a week.
Filipino Traders can access the global forex market by participating in different trading sessions that are based on different time zones. The best time to trade is when the market is most active. When more than one of the four markets overlap, trading volumes are likely to be elevated, meaning there will be more significant fluctuation in currency pairs.
Forex trading hours: When Does The Forex Market Open?
While the forex market is open 24 hours a day, five days a week, each day is broken up into several sessions. The Asia-Pacific session opens first, followed by the European (London) session, and then finally, New York Session (USA).
The forex trading hours of each session can be seen below in Philippine times:
- Sydney – opens at 5AM and closes at 2PM
- Tokyo – opens at 8AM and closes at 4PM
- London – opens at 3PM and closes at 11PM
- New York – opens at 8PM and closes at 5AM
It is important to remember that forex trading hours can vary in March, April, October and November, as countries shift to and from daylight savings or summer times on different days.
Why are the forex market’s trading times important?
The forex market’s trading times are important because, although it is open 24 hours a day, the market is more active during different sessions, or when there is a crossover between two sessions in different geographic locations, which means that spreads are tighter.
Best Time for Forex Day Trading in the Philippines
The best time to trade is during overlaps between open markets. Overlaps usually mean higher price ranges, resulting in greater opportunities.
For Filipino traders, the London and New York session overlap is the most significant of the overlaps. There is a lot of liquidity at this time, with the USD/CAD and EUR/USD currency pairings seeing the most action. Nearly 58% of all forex trades take place in these two markets, making this overlap the most liquid and closely watched time period for many currency traders.
The U.S. dollar and the U.K.’s pound sterling (GBP/USD) are the world’s first, and fourth most actively traded currencies respectively, and their overlapping trade sessions often offer the highest volatility and ample trade opportunities.
As with so many other instances in trading, there is no one ‘perfect’ or best time to trade forex. However, there will be times that are perhaps better than others, or times that will better suit a particular trading style or currency pair.
Disclaimer:
All data, information and materials are published and provided “as is” solely for informational purposes only and does not constitute investment advice. Learn how to trade Forex today. Join our FREE Forex Trading seminar and be part of our growing trading economy!