Forex Market Hours

Why Forex trading market is open for 24 hours?

Now as you know that Forex trading market is open for 24 hours then you must be trying to find the reasons of this fact. This global market involves participation of the traders from all countries. Opening and closing time in different countries are different because of difference in time zone so when opening time and closing time of all the countries are joined, then the result obtained is the 24 hours trading market.

Major Time Sessions

Forex trading market has the four important time sessions. These time sessions are US session, Singapore session, London session and the Tokyo session.

Overlapping Market Hours

The trading sessions in different countries are different and so the opening and closing time of these sessions are also different. So it happens that when one trading session of one country is open, the trading session of another country also begins at the same time and this causes interaction of trading hours. When the trading hours of different trading sessions interact, then these hours are also called Overlapping Forex market hours.

Best and worst trading time

Order sizes increase during the overlapping Forex market hours and this results in the increasing of volatility. Many traders want to trade when the volatility increases because the hours when volatility increases are profit earning hours for any Forex trader. So the best time of Forex market trading is when the volatility is high and the chances of loss are less. The major Forex market overlapping is between the Europe and Asia and between the North America and the Europe.