While the forex market is renowned for its 24-hour trading, liquidity and trading volume vary significantly across different time zones. For margin traders, market volatility presents prime trading opportunities.
So, when are the best forex trading times? Which hours offer the most profitable conditions?
For traders in Taiwan and Hong Kong, the highest-return window typically falls between 8 PM and midnight, though optimal times depend on your strategy. This guide explores forex trading hours and analyzes peak trading periods.
Table of Contents
- Global Forex Markets: Opening/Closing Hours
- Key Factors Influencing Forex Market Volatility
- Best Forex Trading Hours
- Quick Summary: Aligning Trading Times with Your Strategy
Global Forex Markets: Opening/Closing Hours
Forex operates 24/5 (closed weekends and holidays), but trading activity peaks during specific regional sessions. Note that New York and London adjust for daylight saving time (DST).
Major Forex Market Hours (Taiwan Time)
| Market | Local Hours | Taiwan Time |
|---|---|---|
| Sydney | 7:00 AM–4:00 PM | 5:00 AM–2:00 PM |
| Tokyo | 8:00 AM–5:00 PM | 7:00 AM–4:00 PM |
| London | 8:00 AM–4:00 PM | 2:00 PM–11:00 PM |
| New York | 8:00 AM–5:00 PM | 8:00 PM–5:00 AM |
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Forex Market Holidays
- Closures: Weekends (except Middle East markets), Christmas Eve, New Year’s Day, Easter, and Western holidays.
- Middle East: Trades Sunday–Thursday (closed Fridays). Weekend gaps may cause Monday price "jumps."
Key Factors Influencing Forex Market Volatility
Market volatility ranks by region:
New York > London > Tokyo > Sydney
New York (8 PM–5 AM Taiwan Time)
- Key drivers: Fed rate decisions, non-farm payrolls, GDP, and USD pairs (EUR/USD, USD/JPY).
- Highest volatility for USD crosses.
London (2 PM–11 PM Taiwan Time)
- Key drivers: ECB rates, Eurozone GDP, EUR pairs (EUR/USD, EUR/JPY).
Tokyo (7 AM–4 PM Taiwan Time)
- JPY, AUD, NZD see moderate activity; JPY pairs most volatile.
Sydney (5 AM–2 PM Taiwan Time)
- AUD/NZD movements; minimal global impact.
Best Forex Trading Hours
Market Overlap Periods (Highest Volatility)
4:00–6:00 PM Taiwan Time
- Asia/Europe overlap; rising volume and volatility.
9:00 PM–Midnight Taiwan Time
- London/NY overlap; peak liquidity and trading volume.
Avoid Trading During:
- Fridays: High overnight fees and event risks.
- Holidays: Thin liquidity.
- Major news events: Unpredictable spikes.
Quick Summary: Aligning Trading Times with Your Strategy
Optimal trading windows:
- 20:00–24:00 Taiwan Time (NY/London overlap) for forex, metals, and indices.
- Stocks: Align with local exchange hours (e.g., NYSE: 9:30 AM–4 PM EST).
- Crypto: 24/7 trading available.
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Broker Trading Hours (Taiwan Time)
| Broker | Summer Hours | Winter Hours |
|---|---|---|
| IG | Mon 4 AM–Sat 5 AM | Mon 5 AM–Sat 5 AM |
| ThinkMarkets | Mon 5 AM–Sat 4:45 AM | Mon 6 AM–Sat 5:45 AM |
FAQs
Q: Can I trade forex on weekends?
A: Most brokers close; Middle Eastern markets operate Sunday–Thursday.
Q: Why is 9 PM–midnight Taiwan Time the most active?
A: London/NY overlap accounts for 60%+ of daily forex volume.
Q: How do daylight saving changes affect trading?
A: Adjustments shift market hours by 1 hour (e.g., London moves from 3 PM to 4 PM open).