Nyse forex trading hours

The Best Forex Trading Hours.

The best time to trade on the Forex (Foreign Exchange) is when the market is most active. When more traders are active, trading spreads -- the difference between the bid price and the asking price -- tend to narrow. The result is that less of your money goes to the market maker -- the specialist who trades the currency in question -- and more to the buyer and seller.

The 4 Major Forex Exchanges.

Active trading markets are almost always better for traders, whether you are trading on the Forex, the NYSE or any other financial trading market.

But for Forex traders, there's another good reason for trading when the market is most active: volatility. As a result of the nature of the Foreign Exchange's four major exchanges -- New York, London, Singapore, and Tokyo -- when more than one exchange is open, not only does trading volume increase, but volatility significantly increases as well. Although investors often fear volatile markets, volatility -- the extent and rate at which an equity or currency price changes -- is good for traders. Without volatility, prices remain constant and trading cannot be profitable. With volatility comes risk, but also opportunity.

Worldwide Forex Markets Hours.

The Forex has fifteen independent exchanges worldwide. All are open five days weekly, from Monday through Friday. Each exchange has unique trading hours, but from a trading perspective, the four most important exchanges and their hours are the following (all times are Eastern Standard Time):

London: 3 AM to 12 PM (noon) New York: 8 AM to 5 PM Singapore: 3 PM to 12 AM (midnight) Tokyo: 7 PM to 4 AM.

Forex Trading Hour Overlaps.

While each exchange is independent of the other, they are all trading the same currencies. This means that when two of these four large exchanges are open, the number of traders actively buying and selling currencies increases significantly.

Bids and asks on one Forex exchange are immediately reflected in the bids and asks on any other open exchange, which both reduces market spreads and increases volatility.

When you look at the exchange hours listed above, it becomes clear that trading hours on major exchanges occur in two markets simultaneously from:

8 AM to 12 PM (noon) EST, when both New York and London exchanges are open 3 PM to 5 PM, when both New York and Singapore exchanges are open 7 PM to 12 AM (midnight) EST, when both Tokyo and Sydney exchanges are open 3 AM to 4 AM EST, when both Tokyo and London exchanges are open.

The Best Forex Trading Hours.

These four overlaps are normally the three best times to trade. Of these, the most favorable trading time is the 8 AM to noon overlap when both New York and London exchanges are open. These two trading centers account for more than 50 percent of all trades on all 15 exchanges worldwide.

Special situations can arise, however, that can make any hour of the day or night a favorable trading time. Normally, for example, from 5 PM to 6 PM EST is not a promising time to trade; the only major open exchange is the Singapore exchange, which accounts for less than 10 percent of annual Forex trading volume.

If, however, there was a political or military crisis anywhere in the world that developed during this hour, volatility and trading volume would predictably spike in response, making this a very favorable time to trade.

"Best" Doesn't Mean "Profitable"

If you're just beginning to trade on the Forex, it's a good idea to proceed cautiously. Currency trades are highly leveraged -- sometimes as much as 1,000 to 1. This makes the idea of a big win appealing, but also means you can lose most of your money on a single trade. A 2014 Citibank study concluded that although 84 percent of Forex retail traders believe they can make money, only 30 percent break even or better.

It's often a good idea to open your Forex account at a firm that offers new investors "demo" trading, where the results are tallied but the gains and losses are imaginary.

Once you see how you're doing in your demo account, you'll know better how to proceed.

Disclaimer: The Balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.

New York Stock Exchange (NYSE)

The New York Stock Exchange (NYSE) is an American stock exchange on Wall Street in New York City. With a market cap of more than US$16 trillion, the NYSE is the world’s largest stock exchange, averaging US$169 billion in daily trading value in 2013. As of 2014, the NYSE (also known as “the Big Board”) has a listing of nearly 1,900 companies, 1,500 of which are U. S. companies. 1) NYSE Composite Index. www1.nyse/about/listed/nya_characteristics. shtml Retrieved 21 November 2014. The NYSE is owned by IntercontinentalExchange and is regulated by the Securities and Exchange Commission.

History Of The New York Stock Exchange.

The NYSE was founded 17 May 1792 when 24 stockbrokers signed the Buttonwood Agreement on Wall Street in New York City. Famously, they met beneath a Buttonwood tree and formed a centralised exchanged for the burgeoning securities market in the United States. The agreement eliminated the need for auctioneers—used frequently for wheat, tobacco and other commodities—and set a commission rate. The organisation made the Tontine Coffee House its headquarters and focused on government bonds. 2) NYSE – National Register of Historic Places. pdfhost. focus. nps. gov/docs/NHLS/Text/78001877.pdf Retrieved 2 December 2, 2014.

Twenty-five years later, 8 March 1817, the organisation officially became the New York Stock & Exchange Board, later simplified to the New York Stock Exchange. Throughout the early 1800s, the NYSE expanded beyond government bonds and bank stocks. New York itself soon surpassed Philadelphia as the financial center or the United States.

Advances in telegraphic communication allowed buying and selling through the telegraph, creating a new ease in trading. Membership increased and became more exclusive. 3) NYSE – National Register of Historic Places. pdfhost. focus. nps. gov/docs/NHLS/Text/78001877.pdf Retrieved 2 December 2, 2014. By the start of the Civil War, securities, commodities and gold, discovered in California, excited participation in the exchange.

The location changed several times before settling into its present location at 11 Wall Street in 1865. The Neo-Classical building was registered as a Historic Landmark in 1978.

In 1878, telephones were installed, giving investors direct access to brokers on the floor of the exchange. The increased activity made the exchange cap the number of members to 1,060, seats for which required purchase from retiring members.

Between the late 1800s and the end of World War I, the NYSE struggled in the wake of international turmoil. Then the stock market crashed 23 October 1929, causing an 89% drop in share prices. 4) The Beginner’s Guide to Stock Markets. web. archive. org/web/20100525124235/timesonline. co. uk/tol/money/reader_guides/article6250577.ece Retrieved 2 December 2, 2014. The crash led to heavy regulation by the U. S. government. The NYSE subsequently registered with the United States Securities and Exchange Commission. On 19 October 1987 the Dow Jones Industrial Average dropped 508 points, the biggest crash since 1929.

Technology on the NYSE moved from early ticker tapes to handheld computation devices to its current high-speed transactions.

NYSE Trading.

When a company registers with the NYSE (fundamentally to raise capital), shares of the company’s stocks become available for public trading. Traders wanting to invest in the stock market can buy and sell stocks online through exchange companies. Trading takes place on the trading floor through floor brokers and Designated Market Makers. The NYSE assigns Designated Market Makers to each stock to provide liquidity—the only exchange that requires this assignment. 5) The Power of Man and Machine Video. nyse/market-model#power Retrieved 28 November 2014.

Opening and closing bells are rung at the start and end of each trading day; the NYSE’s hours of operation are Monday through Friday, 9:30 am to 4:00 pm ET. Since the 1870s, market participants have been invited to ring the bell, included CEOs, celebrities and more. 6) Shape the Future of Business. nyse/global-visibility#widen-your-reach Retrieved 28 November.

Trading is automated, with the exception of occasional high-priced stocks, making the NYSE the premier hybrid market. Trades execute in less than a second when electronic, while manual trades typically take nine seconds. 7) Hybrid Market. investopedia/terms/h/hybrid_market. asp Retrieved 25 November 2014. Likewise, trades run in a continuous auction format. Currently, investors need only find a brokerage who is a member of the NYSE. Through the brokerage, investors buy and sell stocks and other products from quotes provided to the brokerage from the NYSE.

NYSE Products.

The NYSE holds five regulated markets, including the New York Stock Exchange, Arca, MKT and Amex Options. The NYSE lists medium and large companies, with smaller companies listing on NYSE MKT. On the NYSE, investors can trade several major asset classes: equities, options, exchange-traded funds (NYSE Arca) and bonds (NYSE Bonds).

The NYSE houses several stock market indices: the Dow Jones Industrial Average, the S&P 500, the NYSE Composite, NYSE US 100 Index, the NASDAQ Composite and others.

NYSE Listing Companies.

The NYSE is currently the world’s largest IPO provider, raising US$55 billion in 2013. 8) Shape the Future of Business. nyse/global-visibility#widen-your-reach Retrieved 28 November. Companies listing on the NYSE use a ticker symbol (Apple Inc.: AAPL). Some 20% of the industries represented are from financials—trusts, insurance, and others. 9) NYSE Composite Index. www1.nyse/about/listed/nya_characteristics. shtml Retrieved 21 November 2014. Oil and gas, consumer goods and services, healthcare, technology and telecommunications are among other major industries covered by the NYSE.

Major corporations listing on the NYSE include:

Trading Activity And Controls.

As a response to the market crash of October 1987, the NYSE established a circuit breaker system in October 1988, whereby trading is halted temporarily if the prices fall steeply in a short period of time. The system was devised under the recommendation of the federal Brady Commission report, which suggested that rapidly falling prices could intensify panic among investors and cause limit orders to become stale. 10) Retrieved 10 June 2016 gov. uk/government/uploads/system/uploads/attachment_data/file/289043/12-1066-eia4-stock-market-circuit-breakers. pdf.

The report also suggested that broad price swings could create uncertainty about order execution, which would prompt investors to refrain from trading. The NYSE said that by implementing a pause in trading, “investors are given time to assimilate incoming information and the ability to make informed choices during periods of high market volatility.” 11) Retrieved 10 June 2016 nyse/markets/nyse/market-model-circuit-breakers.

Initially, the exchange set the triggers to suspend trading for up to 15 minutes following point declines in the Dow Jones Industrial Average of approximately 10%, 20% and 30%. In 2013, the exchange altered the rule to establish circuit breaker triggers for declines of 7%, 13% and 20% in the S&P 500. Also under the rules modification, if the market declined by 20%, trading is halted for the remainder of the trading session.

Under the influence of the changes implemented at NYSE and other U. S. exchanges, some other exchanges around the globe adopted the system over the years. 12) Retrieved 10 June 2016 gov. uk/government/uploads/system/uploads/attachment_data/file/289043/12-1066-eia4-stock-market-circuit-breakers. pdf.

Since the establishment of the circuit breaker market protection system, the NYSE has been subject to periods of stress on several occasions.

October 1989: The prices on the NYSE exchange saw a 6.9% one-day decline following a collapse of the junk bond market. October 1997: The Dow Jones fell 7.2%, in response the outbreak of the Asian Financial Crisis. September 2001: In the wake of terror attacks in New York on September 11, the NYSE was closed for four trading sessions. It was only the third time since since March 1933 that the exchange was closed for more than one session. May 2010: The Dow Jones Industrial Average fell about 10%, its largest intraday percentage drop since the October 19, 1987 decrease, in what was called the “Flash Crash.” October 2012: The exchange was closed for two days due to Hurricane Sandy. It was the first weather-related multi-day shutdown since 1888. July 8, 2015: The exchange halted trading for nearly four hours due to technical issues that were initially suspected to be the result of a cyber-attack. No evidence of a security breach was found. 13) Retrieved 10 June 2016 abcnews. go/Politics/stock-market-history-10-worst-days/story? id=14259116#10.

Membership Organisation And Licensing.

After its founding, the membership of the NYSE gradually expanded and by 1868 it was set at a fixed number of 533 “seats.” The term came from the fact that, in its early years through around the 1870s, members sat in chairs to trade.

Holding a seat on the NYSE entitled the owner to directly trade stock on the exchange. Because of this privilege, the seats, which were initially sold for a price of US$25, gained value over time and became a commodity in their own right. The most expensive seat ever was sold for US$625,000 in 1928, which on an inflation-adjusted basis was the equivalent of over US$6 million. 14) Retrieved 10 June 2016 etf/sections/features/514.html.

In 1878, the number of seats was set at a fixed level of 1,060, though it was raised to 1,366 in 1953. In 2005, the exchange accepted an agreement to merge with Archipelago and become a for-profit, publicly traded company. As part of the deal, seat owners received US$500,000 in cash per seat and 77,000 shares of the newly formed corporation. With the change in the ownership structure, the NYSE now sells one-year licenses to trade directly on the exchange. 15) Retrieved 10 June 2016 etf/sections/features/514.html.

In 2015, licenses for floor trading were available for US$50,000 and a license for bond trading is available for US$1,000. Unlike seats, licenses cannot be resold, but they can be transferred during the change of ownership of a company that holds them. 16) Retrieved 10 June 2016 etf/sections/features/514.html.

Competition And Mergers.

In 1971, NASDAQ National Association of Securities Dealers (NASD), founded its own exchange, NASDAQ, which specialised in electronic trading and eventually became a U. S.-based rival to the NYSE. In 2006 NYSE merged with Archipelago Holdings, forming NYSE Group, Inc.; and the following year, NYSE Group, Inc. merged with Euronext N. V., which manages exchanges in France, Belgium, Amsterdam and Portugal. 17) Retrieved 10 June 2016 bloomberg/view/articles/2013-01-08/nyse-s-long-history-of-mergers-and-rivalries.

Following this merger, NYSE Euronext CEO introduced electronic trading on the NYSE to replace its traditional open outcry system. In 2008, NYSE Euronext acquired the American Stock Exchange, and in 2011, NYSE Euronext was sought for purchase by Deutsche Borse. The latter action, however, was rejected by European regulatory authorities. 18) Retrieved 10 June 2016 bloomberg/view/articles/2013-01-08/nyse-s-long-history-of-mergers-and-rivalries.

In December 2012, NYSE Euronext was acquired by the IntercontinentalExchange, which separated NYSE from Euronext. In 2016, Deutsche Borse proposed to purchase the London Stock Exchange for US$30 billion, making it a potential strong rival for the NYSE in Europe. 19) Retrieved 10 June 2016 bloomberg/view/articles/2013-01-08/nyse-s-long-history-of-mergers-and-rivalries.

Despite facing new rivalries, the NYSE still remains the largest exchange in the world. It represents a market capitalisation greater than the next three largest exchanges (NASDAQ, Tokyo and London) combined.

Influence Of NYSE On The Economy.

The NYSE is one of the earliest major world stock exchanges, and it has grown to have significant influence on the U. S. and global economies. As the largest exchange in the U. S. and in the world, the NYSE and its trading are understood to be responsible for the creation, and destruction, of large amounts of financial wealth every hour of every trading day. The rise and fall of share prices on the NYSE affects investor sentiment, encouraging or discouraging investors to spend more or less money in the economy according to gains or losses in their investment portfolios.

The exchange offers companies a significant mechanism to raise capital for their investments, which also injects money directly into the economy and into the creation of jobs. Trading volume on the NYSE in 2015 totaled US$18 trillion, nearly equal to the U. S. gross domestic product and approximately 20% of the gross world product, according to an estimate calculated by the World Bank. 20) Retrieved 10 June 2016 nyxdata/nysedata/asp/factbook/viewer_edition. asp? mode=table&key=3133&category=3.

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How to Set a Forex Trading Schedule.

Many first-time forex traders hit the market running. They watch various economic calendars and trade voraciously on every release of data, viewing the 24-hours-a-day, five-days-a-week foreign exchange market as a convenient way to trade all day long. Not only can this strategy deplete a trader's reserves quickly, but it can burn out even the most persistent trader. Unlike Wall Street, which runs on normal business hours, the forex market runs on the normal business hours of four different parts of the world and their respective time zones, which means the trading day lasts all day and night.

So what's the alternative to staying up all night long? If traders can gain an understanding of the market hours and set appropriate goals, they will have a much stronger chance at realizing profits within a workable schedule.

[Setting a trading schedule is just one aspect of becoming a successful day trader. Investopedia's Become a Day Trader Course provides a holistic education that covers a wide range of topics. With over five hours of on-demand video, exercises, and interactive content, you'll learn a proven strategy and six types of trades that you can use in any market along with how to minimize risk.]

Currency trading is unique because of its hours of operation. The week begins at 6pm EST on Sunday and runs until 5pm on Friday.

But not all hours of the day are equally good for trading. The best time to trade is when the market is most active. When more than one of the four markets are open simultaneously, there will be a heightened trading atmosphere, which means there will be greater fluctuation in currency pairs. When only one market is open, currency pairs tend to get locked in a tight pip spread of roughly 30 pips of movement. Two markets open at once can easily see movement north of 70 pips, particularly when big news is released. (Need a refresher on forex concepts? Common Questions About Currency Trading covers the basics.)

First, here is a brief overview of the four markets (hours in EST):

New York (open 8am to 5pm): According to "Day Trading the Currency Markets" (2005) by Kathy Lien, New York is the second largest forex platform in the world and is watched heavily by foreign investors because the U. S. dollar is involved in 90% of all trades. Movements in the New York Stock Exchange (NYSE) can have an immediate and powerful effect on the dollar. When companies merge and acquisitions are finalized, the dollar can gain or lose value instantly. (Learn one way to predict movements in the NYSE in Which Direction Is The Market Heading? ) Tokyo (open 7pm to 4am): Tokyo takes in the largest bulk of Asian trading, just ahead of Hong Kong and Singapore. It was the first Asian trading center to open. The best currency pairs to aim for (for traders looking for a lot of action) are USD/JPY, GBP/CHF and GBP/JPY. The USD/JPY is an especially good pair to watch when the Tokyo market is the only market open because of the heavy influence the Bank of Japan has over the market. (Learn about this influence in Profiting From Interventions In Forex Markets , and about currency pairs in Using Currency Correlations To Your Advantage .) Sydney (open 5pm to 2am): Sydney is where the trading day officially begins, and while it is the smallest of the mega-markets, it sees a lot of initial action when the markets reopen on Sunday afternoon because individual traders and financial institutions try to stabilize after all the action that may have happened since Friday afternoon. London (open 3am to noon): The United Kingdom dominates the currency markets worldwide, and London is its main component. London, known as the trading capital of the world, accounts for roughly 34% of global trading, according to a report by IFS London. The city also has a big impact on currency fluctuations because the Bank of England, which sets interest rates and controls the monetary policy of the GBP, has set up shop in London. Forex trends often originate in London as well, which is a great thing for technical traders to keep in mind. (Learn more about how the central banks impact currency pairs in Interest Rates Matter For Forex Traders .)

As stated earlier, the best time to trade is when there is an overlap in trading times between open markets. Overlaps equal higher price ranges, resulting in greater opportunities. Here is a closer look at the three overlaps that happen each day:

U. S./London (8am to noon): The heaviest overlap within the markets occurs in the U. S./London markets. According to Kathy Lien, more than 70% of all trades happen when these markets overlap because the U. S. dollar and the euro are the two most popular currencies to trade. If a trader is looking for the most optimal time to trade (when volatility is high), than this would be the ideal time. Sydney/Tokyo (2am to 4am): This time period is not as volatile as the U. S./London overlap, but it still offers a chance to trade in a period of higher pip fluctuation. The ideal currency pair to aim for in this period is the EUR/JPY pair, as these are the two main currencies influenced. London/Tokyo (3am to 4am): This overlap sees the least amount of action of the three overlaps because of the time (most U. S.-based traders won't be awake at this time), and the one-hour overlap gives little opportunity to watch large pip changes occur.

(For more in-depth information about what kinds of market activity can be expected in each period, read The Forex Three-Session System .)

While understanding the markets and their overlaps can aid a trader in arranging his or her trading schedule, there is one influence that should not be forgotten: the news release.

A big news release has the power to enhance a normally slow trading period. When a major announcement is made regarding economic data - especially when it goes against the predicted forecast - currency can lose or gain value within a matter of seconds.

However, just because dozens of economic releases happen each weekday in all time zones and seemingly affect all currencies, it does not mean a trader needs to be aware of all of them. It is important to prioritize these releases so that the important ones are watched and the lesser ones are simply monitored for surprises. (For more insight, read Trading On News Releases .)

Some of the bigger news releases to watch for include:

When setting up a trading schedule, it is important to run a strong balance between market overlaps and news releases. Traders looking to enhance profits should aim to trade during more volatile times, while keeping an eye on what economic data is released when. This balance allows part-time and full-time traders the opportunity to set a schedule that gives them peace of mind, knowing that opportunities are not slipping away when they take their eyes off the markets.

Forex Market Hours.

Forex trading hours: London, New York, Tokyo, Sydney sessions.

Best trading time in the Forex Market.

Forex market hours. When to trade and when not to.

Forex market is open 24 hours a day. It provides a great opportunity for traders to trade at any time of the day or night. However, when it seems to be not so important at the beginning, the right time to trade is one of the most crucial points in becoming a successful Forex trader.

So, when should one consider trading and why?

The best time to trade is when the market is the most active and therefore has the biggest volume of trades. Actively traded markets will create a good chance to catch a good trading opportunity and make profits. While calm slow markets would literally waste your time & efforts — turn off your computer and don't even bother!

Live Forex Market Hours Monitor:

Forex trading hours, Forex trading time:

New York opens at 8:00 am to 5:00 pm EST (EDT)

Tokyo opens at 7:00 pm to 4:00 am EST (EDT)

Sydney opens at 5:00 pm to 2:00 am EST (EDT)

London opens at 3:00 am to 12:00 noon EST (EDT)

And so, there are hours when two sessions overlap:

New York and London: between 8:00 am — 12:00 noon EST (EDT)

Sydney and Tokyo: between 7:00 pm — 2:00 am EST (EDT)

London and Tokyo: between 3:00 am — 4:00am EST (EDT)

For example, trading EUR/USD, GBP/USD currency pairs would give good results between 8:00 am and 12:00 noon EST when two markets for those currencies are active.

At those overlapping trading hours you'll find the highest volume of trades and therefore more chances to win in the foreign currency exchange market.

What about your Forex broker?

Your broker will offer a trading platform wih a certain time frame (the time frame will depend on the country where broker operates).

When focusing on market hours, you should ignore the time frame on your platform (in most cases it'll be irrelevant), and instead use the universal clock (EST/EDT) or the Market Hours Monitor to identify trading sessions.

If you haven't chosen a Forex broker yet, we recommend Forex brokers comparison to aid your search.

We have made it easy for everyone to monitor Forex trading hours sessions while being anywhere in the world:

Download Free Forex Market Hours Monitor v2.12 (814KB) Last update: April 20, 2007. Time zone option is added for most of North American and European countries.

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Forex trading is a high risk investment. All materials are published for educational purposes only.