The forex market is truly an innovative marketplace. It truly never closes. It is open from Sunday afternoon Eastern Standard Time to the following Friday afternoon Eastern Standard Time. So if you really wanted to trade 24 hours a day, you are more than welcome to do so.
Just to clarify, there isn’t one forex marketplace. It is actually a network of currency markets whose opening and closing times overlap. So when one market is closing, your next market is opening, making it a 24 hour trading network.
While you are more than welcome to trade 24 hours if you want, there are just a few optimal hours to trade each day. That is the key to extracting the most profit out of the day. You have to recognize the high volume transaction periods. Those allow you to actually come in at attractive support levels, ride out your trade to its full term, and exit with your profits.
Remember to keep in mind that some days and markets have more transactions than others. You will begin to recognize the optimal trading times as you gain more experience. Generally speaking, the highest transaction volume for the major markets occurs in the middle of the week. Some hours are much busier than other, but overall, Tuesday and Wednesday have the highest pip variations.
Here is a quick rundown of the major forex markets:
New York – 8:00 am to 5:00 pm EST
London – 3:00 am to 12:00 noon EST
Sydney – 5:00 pm to 2:00 am EST
Tokyo – 7:00 pm to 4:00 am EST