If you have watched the film Frozen, you should know what it likes to be frozen in time. You might think why we have brought such a topic in forex understanding when we are saying it is open 24 hours. But it is for your own good. Because there is a time you should trade to make money with the market movement, here up, and you shouldn’t trade with the market moving down.
And at times, there will be time, when the market will be frozen in time and will not move. It is just like as if Elsa had used her superpower on Forex market. It might be hard to digest, but it does happen in Forex. That is why it is important for you to know when you should trade to make money.\
Forex Trading Hours
The forex market has major 4 trading hours. They are the Tokyo session, the New York session, the Pip crawler’s favorite time to trade and the Sydney session.
Each of these 4 major time zones is divided into two sessions. the summer and the Winter.
Here is a chart for you to familiarize yourself with the time zone of Forex Trading Hours.
Figure: Summer Time Zone
Figure: Winter Time Zone
The openings and closings of these time zones are their local times. If you look closely, you will find that there is a time when the two sessions overlap. In summer, the Tokyo and London session overlap, whereas in Winter the London and the New York session overlap.
When two markets are open, it is very profitable to trade in Forex as more money are transferring from hands. It is also the daytime for business dealers, which makes it the rush hour for money making in Forex trading.
This is the starters for your Forex trading hours. Trading in the forex also involves the movement of pips.
It is not important that you only look at your forex trades and do not trade at other times. In fact, Forex is not that simple. It also involves the movement of pips in the trading session.
Here is a chart which will show you how the major currencies moves in the trading hours of the forex in average
Figure: Average Pip movement in Forex trading hours
You can watch it on the table that, European sessions are most likely to give you the best possible pip movement in average.As a trader, you should always be aware of the forex timing since it will allow you to execute the best trades in the market.