If you want to understand how global markets work, knowing when they open and close will help you plan better.
Trading sessions in South African time, the London, New York, Sydney and Tokyo markets have their own hours and these hours affect how much activity or price movement there is in the market.
Let’s break it down and see what makes each period special and how to navigate them.
What do Different Market Hours Mean?
While the financial market is open almost continuously from Sunday night to Friday evening, that doesn’t mean it’s always busy.
The market’s activity depends on which global financial centers are operating at any given time.
Cities like Sydney, Tokyo, London, and New York each have specific opening and closing times, forming distinct periods of activity that can influence the level of market movement.
Each of these periods represents a window when banks, investors, and other large financial institutions are actively buying and selling.
For example, the Tokyo period is influenced heavily by Asian financial markets, and it often features more movement in currency pairs like USD/JPY or AUD/JPY.
On the other hand, the London period is driven by European markets and tends to see more activity in pairs involving the Euro (EUR) or the British Pound (GBP).
Why Time Matters in Financial Markets
Knowing when to make a move is key. Some periods are busy, others are quiet. When you trade during peak times there are more chances to catch price movement.
But it also means more risk. On the other hand quiet periods might be calm but less profit potential. Picking the right time depends on what type of trading style you are.
Tip: Times may vary slightly due to daylight saving changes, so double check before you make a decision.
Best Times for Different Strategies
Morning (10:00 AM – 12:00 PM SAST): Good for those who focus on European currencies like the Euro or the British Pound. When the London market opens the prices of these currencies start moving.
Afternoon to Early Evening (3:00 PM – 5:00 PM SAST): New York is also open. Both London and New York are open, so there’s a lot of activity, good for quick trades on major pairs like EUR/USD or GBP/USD.
Remember
- Look for Overlapping Times: When two markets are open at the same time you see more price movement. For example when London and New York overlap (3:00 PM to 7:00 PM SAST) it’s a good time to act.
- Consider Local Factors: Keep an eye on local news in South Africa, economic news or political updates. These can affect the market. Stay informed.
- Use Practice Platforms: It’s smart to use demo accounts to practice. Many platforms like JustMarkets let you try out different times and strategies risk free.
Advanced Tips
- Price Moves: Prices tend to move more in the first 2-3 hours when markets open. If you want to get in on the action, try trading during these times.
- News Alerts: Major news releases can cause price jumps. For example U.S. data often moves prices during New York session.
- Currency Pairs: Each time zone has its own best pairs. For example AUD/JPY is more active when Tokyo is open, EUR/USD or GBP/USD tends to move more during London/NY overlap.
What to Avoid
- Trading Too Much: It’s tempting to trade all the time since the market is always open but this can lead to fatigue and mistakes. Be smart and pick your battles.
- Low Activity Hours: Some hours are known for low activity and prices can be flat. Unless you’re an experienced trader, it’s better to avoid these times.
- Ignoring Sudden Moves: Events like speeches or unexpected news can move prices suddenly. Setting alerts for major news can help you avoid surprises.
Conclusion
Choosing the right time to trade is about finding what works for you. Some like the busier times, others prefer quiet and steady markets.
Use demo accounts to try different times risk free. Watch local events and news that could impact the markets.
In my opinion the overlap between London and New York is the most exciting for those looking for quick moves.
But if you’re more conservative the steady rhythm of one period like London only might be for you.
Whatever you choose always stay informed, manage your risks and never risk more than you can afford to lose.