The Forex market has a huge advantage compared with the other investment markets: it is open 24 hours a day, six days a week. Whereas the commodities and stock market are open five days a week (Monday through Friday) during normal business hours, the Forex market is active around the clock. If you want to trade at 3:00 am EST on Monday morning you can place your trade. If you would like to invest at 8:00 pm on Thursday night you can easily place your trade. But even though the market is a 24-hour market it is necessary to know when the market is actually active and when is the best time to make a trade.
Even though the Forex market is open 24 hours a day each trading center (New York, London, Frankfort, Tokyo, and Australia) has its own operating hours that
are usually from 8:00 am - 4:00 pm, local time. That implies when it is 8:00 am (Tokyo time) on Monday morning the Tokyo market will be open for trading even though it is 10:00 pm EST on Sunday
With so many trading centers around the globe you will have times when two or more markets overlap. E.g. the New York and London markets overlap from 8:00 am to 12:00 pm EST while the London and Tokyo markets overlap from 3:00 am to 4:00 am EST. The Sydney and Tokyo markets also overlap from 7:00 pm - 2:00 am EST. These overlapping periods are the best time to trade because the volume - liquidity - is big.
Besides the overlapping periods it is best to trade at the following times:
It is best to avoid the following times or days: