Forex trading is a 24-hour market that operates five days a week. It is one of the largest financial markets in the world and is open for trading in different time zones. Forex trading starts on Sunday at 5 pm Eastern Standard Time (EST) and ends on Friday at 5 pm EST. However, the actual trading hours vary depending on the time zone.
The Pacific Daylight Time (PDT) is a time zone used in the western parts of North America. It is eight hours behind Coordinated Universal Time (UTC-8). Forex trading hours in PDT start at 2 pm on Sunday and end at 2 pm on Friday. However, this is subject to change depending on daylight saving time (DST) changes.
Daylight Saving Time
DST is a practice of advancing clocks by one hour during the summer months to extend daylight hours in the evening. The United States (US) observes DST, which starts on the second Sunday of March and ends on the first Sunday of November. During DST, the time in PDT is seven hours behind UTC-7 instead of eight hours behind UTC-8. Therefore, forex trading hours in PDT during DST start at 3 pm on Sunday and end at 3 pm on Friday.
Forex Trading Sessions
The forex market is divided into four trading sessions based on the time zone: Sydney, Tokyo, London, and New York. Each session has its unique characteristics in terms of market activity, volatility, and liquidity. The following is a breakdown of the forex trading sessions in PDT:
Sydney Session
The Sydney session starts at 2 pm PDT and ends at 11 pm PDT. It is the first session of the trading week and is known for low volatility and liquidity. The Australian dollar (AUD) is the most actively traded currency during this session.
Tokyo Session
The Tokyo session starts at 4 pm PDT and ends at 1 am PDT. It overlaps with the Sydney session for two hours, which creates a period of high volatility and liquidity. The Japanese yen (JPY) is the most traded currency during this session.
London Session
The London session starts at 12 am PDT and ends at 9 am PDT. It overlaps with the Tokyo session for four hours, which creates a period of high volatility and liquidity. The euro (EUR), British pound (GBP), and Swiss franc (CHF) are the most traded currencies during this session.
New York Session
The New York session starts at 5 am PDT and ends at 2 pm PDT. It overlaps with the London session for four hours, which creates a period of high volatility and liquidity. The US dollar (USD) is the most traded currency during this session.
Best Times to Trade Forex in PDT
The best times to trade forex in PDT depend on the trader’s strategy and preferences. However, the following are some general guidelines:
– The Sydney and Tokyo sessions are best for traders who prefer low volatility and liquidity.
– The London session is best for traders who prefer high volatility and liquidity, especially for pairs involving the EUR, GBP, and CHF.
– The New York session is best for traders who prefer high volatility and liquidity, especially for pairs involving the USD.
Conclusion
Forex trading in PDT starts on Sunday at 2 pm PDT and ends on Friday at 2 pm PDT, subject to DST changes. The forex market is divided into four trading sessions: Sydney, Tokyo, London, and New York, each with its unique characteristics in terms of market activity, volatility, and liquidity. Traders should choose the best times to trade based on their strategy and preferences. It is essential to keep track of the forex trading hours in PDT to avoid missing out on potential trading opportunities.
