Assets can be traded on the various global markets, each of which is open for a different period in a 24 hour cycle. The time zone governing each market will impact its responses to international news. For example, the Asian markets are closed during American afternoon hours. This means that the Asian markets cannot react to a potentially market moving event that occurs during US trading hours until they reopen. By that point, later news items may have taken precedence over the original event or neutralized it, so that it will have less impact on the Asian market than it had on the American market.Forex and stock Market trading Hours
Top Trading Hours
- Sydney and Tokyo: from 00:00 to 07:00 (GMT)
- New York and London: from 13.00 to 17:00 (GMT)
- London and Tokyo markets overlap for one hour only, from 08:00 to 09:00 (GMT)
Being aware of which exchanges are open at the time you are assessing a news item for its market significance is critical to your trading strategy. Peak opportunities arise when you trade currency pairs of two markets that are open concurrently.
Best opportunities for trading
So too, from 00:00 to 03:00 (GMT), the Asian and Australian markets are both simultaneously active, creating an equally attractive trading opportunity.
European and Asian market trading hours
Trough trading hours occur when there is little or no overlap between markets. For example, the US market closes at 22:00 (GMT) and only then does the Australian market open. From 21:00 to 23:00 (GMT), the European and Asian markets are closed and there is no overlap in global trading. Therefore, trading volume is low and opportunities for exploiting market movement are limited.
So, while you can trade world markets 24 hours a day, taking advantage of certain peak trading hours will enable you to better exploit the full potential of global financial markets.