Currency and commodities are traded 24 hours a day and 5 days a week. The trading session opens in Wellington, New Zealand on Monday morning, and stay open till Friday night in New York. It provides traders with excellent trading opportunities at any time of the day or night.
The best trading time is when the market is the most active, therefore the trading volume is bigger in the active market.
Each trading day can be divided into three trading sessions, depending on the financial center that is active during a specific session. The opening and closing time of each session is based on local working hours:
Forex trading time:
Sydney opens at 22:00 and closes at 06:00 (GMT)
Tokyo opens at 00:00 and closes at 08:00 (GMT)
London opens at 08:00 and closes at 16:00 (GMT)
New York opens at 13:00 and closes at 21:00 (GMT)
The Asian session starts with the Sydney open (22:00 GMT) and ends with the Tokyo close (08:00 GMT).
Japan is the third largest foreign exchange trading center in the world, so we call it the Tokyo trading session. The currency with the largest trading volume during this trading session is the Japanese yen. About 21% of all foreign exchange transactions are traded here.
The European session begins with the London open (08:00 GMT) and close (16:00 GMT).
London is considered to be the capital of foreign exchange. Although there are multiple financial centers throughout Europe, London is attracted to transactions, so we call it the London Conference: about 32% of all foreign exchange transactions are conducted here.
New York Session
The American trading session begins with the New York open (13:00 GMT) and close (21:00 GMT). In American session more than 19% of all forex transactions are carried out here and around 85% of the trades involve the US dollar, Most economic and other high impact fundamental news reports are released at the beginning of the American session.