There are many things you will need to learn about the Forex market in general if you wish to succeed in trading. For instance, you will need to know about margins and pips and the lingo and how to open a demo account to practice and how to contact a broker – on and on it goes.

One thing a lot of people overlook with Forex, however, is the actual time of day you should be trading depending on where you’re at in the world. Trading at the proper times when the market is at its peak capacity will give you a tremendous benefit in any trade.

Forex Global Times

Because Forex is a global market, someone is always buying and/or selling currencies. As one market closes in a country, another is opening up. Add to the fact that market times overlap and the exchange continues day and night, you have 5 ½ potential trading days.

In New Zealand, the market opens at 5pm on a Sunday and is quickly followed by Australia, Asia, Europe, and America and on back around the globe. It stays opening and closes this way until Friday at 4pm EST when the market finally shuts down in America.

In terms of the best time of day for you to trade, it does certainly depend on where you’re at the world. But no matter if you live in the Middle East or in the American Midwest, a market overlap gives you the most potential for profit. To be a trader as a trait, you should entertain setting your work schedule around the market instead of simply working when you find the time.

Taking the entire market in its context, we can see that there are two time gaps when two of the biggest markets overlap during their respective trading hours. From 2-4am EST in the Asia/Europe market and between 8am-12pm EST in the Euro/North American market, you will find a lot of action going on due to the hours overlapping and traders from different areas in the world looking to make transactions before their particular clock runs out.

If you can set your schedule to revolve around these overlaps, you can find a good amount of leverage and gain a great benefit when trading in the Foreign Exchange Market.