Market Overlaps & What You Should Know

The currencies market is different from all others because it’s a truly global market. Its hours of operation begin at 6pm EST on Sunday and runs until 4pm EST on Friday. And while it might be possible to trade the entire 118 hours in between, we don’t recommend it—you need to sleep sometime! There are times when the markets are active and moving, and you can use these times to benefit your trading!

There are four major currency centers in the world: Sydney, Tokyo, London, and New York. Though these hotspots are all across the globe, you can probably guess that some of the most active markets will be found within their overlap. Here are the three market overlaps you should know about:

New York/London (8am to 12pm EST) – More than 70% of all trades occur within this time period, making it by far the heaviest market overlap in the markets.

Sydney/Tokyo (2am to 4am EST) – The ideal currency pair to aim for in this period is the EUR/JPY, as these are the two main currencies involved.

London/Tokyo (3am to 4am EST) – This overlap sees the least amount of action of the three because most American traders won’t be awake at this time, and the one-hour overlap gives little opportunity to watch large pip changes occur.

As you can see, all hours are not created equal in the currencies market. If you have the opportunity, take advantage of these market overlaps in your trading and see what happens. Good luck!

About Tom

Tom Lund is the Content Manager at Apiary Fund where he began his career in 2012. He creates and edits the educational material that Apiary Fund uses to train new foreign exchange traders. Lund researches and writes the investing news and tips for the Apiary Fund blog and website. He graduated from Brigham Young University-Idaho with a bachelor’s degree in English.

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