Despite the fact that trading operations on financial markets are mostly performed online these days, traders must know the schedules of the major global sessions.
Most of the year, from Monday to Friday, financial markets operate as usual - quotes are updated while traders trade. However, due to the time difference in different parts of the world, a trading day is conveniently classified into 4 sessions: Asian, European, American, and Pacific.
As dealing periods overlap each other, it is pretty easy to choose the "right" trading hours for you.
Schedule of Forex and Stock market trading hours. The time zone is UTC+2 (Eastern European Time, EET):
When talking about Forex or Stock markets hours, it is common practice to use the UTC time zone - the Universal Time Coordinated. The server time in RoboMarkets terminals differs from the UTC by 2 hours (UTC+2). When several countries switch to daylight saving time (DST) in spring, the difference gets bigger (UTC+3).
All Stock and Forex markets hours are characterized by its own features and factors.
That is the first stock market open time. During this trading session, they trade securities quoted on TSE (Tokyo), SGX (Singapore), HKSE (Hong Kong). For example, stocks of famous Japanese manufacturers of cars and electronics, such as Honda, Toyota, Canon, Casio, Sony, etc.
On the foreign exchange market during this period of time, trading operations involving the Japanese Yen and the Australian Dollar have the biggest volume. The most popular instruments are USDJPY, EURJPY, AUDUSD, and NZDUSD. As a rule, volatility increases as the start of the European session approaches, but later it dies down.
As a rule, this timespan is characterized by heavy price action at the beginning and after lunchtime when European traders get back to their workplaces. The session in Frankfurt starts at 08:00 CET, while dealings in London begin at 09:00 CET. Due to the difference between time zones, it is clearly seen when the Asian session finishes and the European one starts.
The European session is marked by higher volatility. This stock market features such popular assets as the DAX30 index, while the Forex market offers major currency pairs.
The start of this session occurs when European traders finish their working day, and this doubles the effect: on the market, there are both European traders, who are finishing their working day, and American traders, who have just come to their PCs with renewed vigor and new ideas. That's why the American session is known as the most active and aggressive one, both on the currency and stock markets.
It’s the best moment for investments in the stocks quoted at NASDAQ and NYSE, which include Apple, Twitter, Amazon, and other companies.
This session starts in Wellington at 6:00 PM UTC. At 8:00 PM UTC, Sydney joins the session. The Pacific session is the only one that overlaps all other sessions. It is characterized by moderate volatility provided no significant political and economic events are happening during this time.
Why should a trader know the trading schedule?
To use time in the market efficiently, a trader needs to know the trading schedule. Trading hours of different exchanges are the same, and due to the time difference, trading can be conducted around the clock. This is especially important for continuous automated trading.
In addition, exchange rates and other indicators in different periods of the same trading session may differ significantly. Each session also requires a separate strategy, so each trader must act following the trading schedule.
When do markets stop working?
All global markets are closed on Saturdays and Sundays, as well as on holidays. Also, trading schedules may be different for particular instruments. The freshest information on upcoming changes in schedules due to holidays or other reasons can be found at this page.