The Forex market, the largest financial market in the world, witnesses trillions of dollars in daily trading volume. One of the key aspects for traders is knowing the Forex opening hours in Iran time and the precise timing of trading sessions, as these vary based on geographical regions and different trading sessions.
This knowledge can help traders plan more effectively and take advantage of optimal opportunities for their trades.
What is the Forex Market?
Forex (Foreign Exchange) is a global market for trading foreign currencies. This market operates 24 hours a day, five days a week, as currencies are traded across various countries and time zones. The Forex market is divided into four major trading sessions: Sydney, Tokyo, London, and New York.
Each trading session has its own characteristics and schedule. For Iranian traders, knowing the start and end times of these sessions in local time (Iran) can help improve their planning and trading strategies.
Forex Market Schedule
The Forex market starts on Monday (UTC) with the opening of the Sydney session and ends on Friday when the New York session closes. Below is the schedule of Forex trading sessions in Iran time:
- Sydney Session: 12:30 AM to 9:30 AM.
- Tokyo Session: 3:30 AM to 12:30 PM.
- London Session: 11:30 AM to 8:30 PM.
- New York Session: 4:30 PM to 1:30 AM (next day).
The overlap between the London and New York sessions is one of the best opportunities for Forex market liquidity.
Sydney Session
The Sydney session is the first trading session in the Forex market, opening after the weekend. It operates from 12:30 AM to 9:30 AM Iran time.
The Sydney market is relatively calm due to low trading volume in the early hours, making it a good opportunity for beginners to learn and analyze.
Tokyo Session
The Tokyo session, also known as the Asian session, is the second Forex trading session. It runs from 3:30 AM to 12:30 PM Iran time.
This time frame is particularly significant for Iranian traders because it overlaps with the Sydney session. Currency pairs like USD/JPY and EUR/JPY often experience the highest volatility during this session.
London Session
The London session is the third Forex trading session and accounts for the highest trading volume. It operates from 11:30 AM to 8:30 PM Iran time.
The overlap between the London and New York sessions (4:30 PM to 8:30 PM) provides excellent opportunities for traders due to increased market activity and liquidity.
New York Session
The New York session is the final Forex trading session, running from 4:30 PM to 1:30 AM Iran time.
This session is highly significant because of the active participation of American traders and the release of major economic news, resulting in increased trading volume and market volatility.
Forex Market Timing in Summer and Winter
The difference in Forex market opening and closing times during summer and winter is due to the implementation of Daylight Saving Time (DST). In summer, the overlap between Forex markets occurs earlier, leading to a shift in trading hours.
Forex Market Timing: Summer vs. Winter
| Market | Summer (Late March to Late October) | Winter (Late October to Late March) |
| Sydney | 1:30 AM to 10:30 AM | 12:30 AM to 9:30 AM |
| Tokyo | 3:30 AM to 12:30 PM | 3:30 AM to 12:30 PM |
| London | 11:30 AM to 8:30 PM | 12:30 PM to 9:30 PM |
| New York | 4:30 PM to 1:30 AM (Next Day) | 5:30 PM to 2:30 AM (Next Day) |
Impact of Daylight Saving Time
- DST in Europe and the US:
European and American markets apply Daylight Saving Time, whereas Asian markets (e.g., Japan) do not.
This causes Forex markets like London and New York to open one hour earlier in summer compared to winter. - Overlap Between Sessions:
During summer, the overlap between London and New York sessions occurs earlier, which also shifts the peak trading hours.
Session Timings in Summer
- Sydney Session: 1:30 AM to 10:30 AM
- Tokyo Session: 3:30 AM to 12:30 PM
- London Session: 11:30 AM to 8:30 PM
- New York Session: 4:30 PM to 1:30 AM (Next Day)
Why Does Forex Timing Change in Summer and Winter?
The timing difference is due to the adoption of Daylight Saving Time (DST) in many countries. In the first half of the year (spring and summer), clocks are moved one hour forward to make better use of daylight. This adjustment affects the global trading schedule, shifting the Forex market hours accordingly.
Effects on Trading
- Earlier Overlaps:
In summer, overlaps between sessions occur earlier, especially between London and New York sessions, which are known for their high liquidity and volatility. - Peak Activity Hours:
The adjustment affects the peak trading hours, offering opportunities for traders to capitalize on higher market activity.
Understanding these shifts and planning your trades around the optimal trading hours can significantly enhance your strategy and results in the Forex market.
Holidays in the Forex Market
The Forex market operates 24 hours a day, five days a week. However, its activity is influenced by specific holidays throughout the year. These holidays can significantly affect the volatility and liquidity of the Forex market. Some key holidays impacting Forex trading include:
Key Holidays Impacting the Forex Market
- Christmas and New Year’s Day (December 25th & January 1st):
These are some of the least active trading days, as most banks and financial institutions are closed. - Thanksgiving in the United States (Fourth Thursday of November):
Trading volume in the New York session decreases significantly as banks and many traders in the US take the day off. - Good Friday:
Observed in many European and American countries, this Christian holiday results in limited market activity in these regions. - Independence Day in the United States (July 4th):
Market activity in the New York session is significantly reduced on this day. - National Holidays in Other Countries:
Public holidays in countries like Japan, China, or Australia can affect the liquidity of currency pairs that include their respective currencies.
Impact of Holidays on Forex Trading
- Lower Trading Volume:
On holidays, trading volumes drop, especially for major currencies tied to regions observing the holiday. - Market Volatility:
Reduced liquidity can lead to unusual or unpredictable price movements. - Strategic Adjustments:
Many professional traders avoid trading during holidays or focus on market analysis to prepare for post-holiday opportunities.
What Should Traders Do During Holidays?
- Plan Ahead:
Use a Forex holiday calendar to anticipate days with reduced activity or potential market fluctuations. - Avoid Overtrading:
Limited liquidity can result in unpredictable market behavior, so it’s wise to minimize trading on such days. - Focus on Analysis:
Holidays provide a good opportunity to analyze the market and refine trading strategies for when normal activity resumes.
Forex Market Opening Hours for Gold in Iran Time
In gold trading (XAU/USD), the times with the highest activity and trading volume usually overlap with the two largest Forex markets: London and New York. This time frame typically experiences the highest liquidity and volatility in gold prices.
Best Times for Gold Trading
- London and New York Overlap:
- Iran Time: Between 16:30 and 20:30
This period has the highest liquidity and trading volume as both European and American traders are active. The release of US economic news during this time also contributes to increased gold price volatility.
- Iran Time: Between 16:30 and 20:30
- New York Session Start:
- Iran Time: From 16:30 to 19:00
During this time, the New York market opens, and major US economic news is released, significantly impacting gold prices.
- Iran Time: From 16:30 to 19:00
- London Session:
- Iran Time: From 11:30 AM to 16:30 PM
During this period, the London market is active, and gold experiences substantial volatility due to the high activity of European traders.
- Iran Time: From 11:30 AM to 16:30 PM
Key Notes for Traders During Holidays
Traders aiming for success in the Forex market should pay attention to the following key points during holidays:
- Unusual Market Movements:
On holidays, due to reduced trading volumes, the market might experience unusual volatility or unpredictable movements. - Reduced Activity:
Many professional traders avoid trading during these days or focus solely on market analysis. - Holiday Planning:
Trading plans during holidays should be approached with extra caution to avoid risks caused by low liquidity.
Being aware of official holiday calendars and their impact can help traders plan better and avoid unexpected market fluctuations.
Important Notes for Iranian Traders
For success in the Forex market, it is essential for Iranian traders to be aware of key principles and fundamentals. These include precise planning, time management, attention to economic news, and understanding important market timeframes that can significantly impact trading performance.
- Planning Based on Market Timing:
One of the most critical factors for success in Forex is precise planning based on market timing. Iranian traders should adjust their trading hours considering the time zone differences to utilize optimal opportunities. - Focus on Economic News:
The release of significant economic news during trading sessions can greatly influence market volatility. Traders should pay special attention to the timing of such news and their impact on different currency pairs. - Time Management and Rest:
Traders should schedule their trading sessions in a way that does not compromise their rest and well-being. This is particularly important for those who plan to trade during nighttime hours. - Overlap of Trading Sessions:
A unique feature of the Forex market is the overlap of trading sessions, which increases liquidity and volatility. For example, the overlap between the London and New York sessions (16:30 to 20:30 Iran Time) is one of the most active periods in the Forex market.
The Forex market, with its 24-hour, five-day-a-week nature, provides a unique opportunity for traders. Understanding the timing of trading sessions, especially for Iranian traders facing time zone differences, is of great importance.
Recognizing active market hours, session overlaps, and the impact of economic news can improve performance and help achieve better results. Additionally, effective time management and precise planning to balance trading with rest are fundamental principles every trader should follow. By focusing on key aspects and making optimal use of market opportunities, traders can capitalize on market volatility with effective and successful strategies