FOREX TRADING

FOREX TRADING: OPEN ALL HOURS

Unlike other equities markets, the foreign exchange markets are a 24 hour trading platform, following the trading hours of each of the world’s major financial centres as the world turns.

Whilst each of the major Forex trading floors, in Sydney, Toyko, London and, New York are individually only open for nine hours a day, their opening hours overlap to create a seamless 24 hour trading cycle.

In truth, the bulk of the trading takes place when the London and New York centres are open for business, London being the busier of the two, handling around 32% of Forex trades.

Sydney opens trading at 10pm (GMT) although little activity takes place until the Tokyo market opens at midnight, signalling the bulk of far-Eastern currency trades.

With Sydney closing 7:00am (GMT), Tokyo is left to trade alone before London opens at 8:00am.

As the trades pick up, Tokyo closes its doors at 9:00am to leave London as the sole trading floor until New York opens at 1:00pm. It is that overlap between the New York trading floor opening and the London floor closing at 5:00pm when the bulk of Forex trading takes place.

New York then closes at 10:00pm, just in time for the opening of the Sydney exchange at 10:00pm.