Forex currency trading guides for beginners - When should you trade forex?
The best time to trade forex
You have now become familiar with what the forex market is. You are not quite ready to start trading yet. I now want to introduce you to when the forex market is open and when you can/should trade.
The forex market is a 24hr/day market. You can trade during any hour of the day except during saturdays and sundays. In forex you make money when the market moves up or down.
However, you don't make any money when the market does not move at all. In this lesson, we aim to discover the best times of the day to trade forex.
Let's hold on to that thought for the moment and take look at what a 24-hour forex day will be like. We can classify the forex trading hours into four different sessions. These are the Sydney, Tokyo, London and New York sessions. Look at the chart below to see the opening and closing hour for the various sessions.


From the charts, you'll discover that between 3am and 4am EDT, the Tokyo and London sessions are openned simultaneously and between 8am and 12am EDT, the London and New York sessions are opened simultaneously.
Logically, these two periods are the bussiest during the trading sessions. Most of the volume of trades will occur during these periods.
The chart below shows the average pip movement of the major currencies during each trading session.

You'll discover that the London session usually brings the most pip movements.
Before we can answer when is the best time to trade, we'll need to take a closer look at the various sessions which we sall do in the next few lessons. Click "next lesson" below to proceed.
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