The foreign replacement market is open for trading 24 hours per day for 5.5 days out of the week, making it the only truly global marketplace that does not close while any major stock exchange around the world is open. Trading activity begins when the stock market opens in Tokyo at 7PM Eastern time, which is Monday morning in Sydney and Tokyo, and trading activity generally ceases at 5PM Eastern time when the futures market closes in New York.
Bout of the biggest market moves occur when the stock market is open in London, which is why London is generally referred to as the foreign exchange capital regarding the world. For many forex traders, their favorite time to trade each of the major coin pairs is when there are two major markets that are extended simultaneously, such as the first few hours beyond the New York Stock Exchange opens and the markets in London are still open unless are getting prepare to close.
These overlapping time periods where more than one extensive financial center at a time is open for trading tend to be the highest volume times of the trading day, and it also tends to be the time when liquidity is the highest. Consequently, there are forex traders who choose that they only want to trade during these periods of time . Any major fundamental news or indicators that might be released during this market overlap time can move the market several hundred pips, since this is the culmination time with the most active traders.
All the major stock markets around the world are exclusive on the weekends, and generally this tends to be a quiet measure for the foreign exchange exchange because there is very little trading activity taking place. This does not necessarily mean that there is zero market liquidity, but it does mean that the market movements that occur are not well-nigh as significant as they are during open market hours on the weekdays.
For the most part you should still be skillful to open and close trading positions even with minimal market volume, nevertheless for most trading strategies there will not be any trading signals that show clear entry and exit points during this time since the market will be impressive sideways. When the New York Stock Exchange closes on Friday evening this signals the end of the global trading week, which demise resume again when the financial markets open in Sydney and Tokyo early the following Monday morning.