One of the advantages of trading currencies (compared to other types of securities) is that forex markets operate continuously from 6PM (US Eastern time) Sunday to 4PM Friday. However, some traders may find this overwhelming. After all, if the markets never close, how should one decide when to trade? Let’s begin with a quick overview. London dominates worldwide forex trading, with New York in second place, followed by Tokyo and Sydney. Investopedia points out that the best time(s) to trade are when these markets overlap, due to a surge in liquidity, and hence, volatility. The best such overlap is between London and New York, due to the popularity of the Euro/USD pair. During these times, the "Pip" spread can widen from 30 to 70. However, since Tokyo dominates trading in Asian currencies, its overlap with Sydney is also a prime time to trade. Forbes reports:

When more than one of the four markets are open simultaneously, there will be a heightened trading atmosphere, which means there will be greater fluctuation in currency pairs.

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