One of the key benefits to trading on the currency markets is that they are open around the clock. This is due to the electronic exchanges on which the exchanging of currencies takes place. Unlike the Stock markets of the world, Forex does not make use of a central exchange. Instead it is an formed of an interconnected network of banks and dealing exchanges which allow the continuous exchange of currencies.

For the trader of currencies this has many unique advantages. They are not limited to simply trading set times. In fact it is possible to trade around the clock, twenty four hours a day. The only time that is not available for the trader to place deals is at the weekend. Nevertheless this wide trading window affords a lot of opportunities for the trader who is looking to make high profits from their trading activities.

However while it is possible to trade at any point during the course of the day, this is not necessarily what the trader, who is looking to make the highest return from their trading, should actually do. Due to the opening and closing of regional financial markets around the globe, there are distinct times when the trader will gain a greater benefit from trading.

To some degree the strategy used will dictate the times that should be traded. Certain trading strategies on Forex are best suited to particular market dynamics that occur at particular points of the day. For example, trading a breakout strategy will work at its best when there is the likelihood of strong momentum building in the market. This tends to be at the opening of a major market session. here the London market opening time would be a good example.

Knowing the best times to trade your strategies will give you a distinct advantage when it comes to trading. Therefore it pays to get know the different markets sessions and the specific characteristics of each. This will enable you to exploit your strategies to the their maxim mum potential.

Here is a brief overview of what are known as 'market sessions'. Each coincides it the opening of a major financial region around the globe. You should also be aware of times when these sessions 'crossover'. During these times news flow can dictate the strongest daily moves as their will be a greater number of trading institutions active at these times.

The two most important trading sessions are the London and New York trading sessions. The London session is the busiest as it also coincides with the opening of the European markets. More currency transactions take place on this market than at  any other point in the day. This session is intersected midway through by the New York session. As you may expect this is a volatile trading time with the United States market also seeing large trading volumes. If a live currency quote is going to show strong directional movement, then expect it to do so during one of these periods.

The other trading times of note are the Pacific and Asian sessions. The pacific session is the quietest, and is signalled by the opening of the financial markets in Australia and New Zealand. Trade then picks up again as the Asian markets open, with the Japanese Yen being the most heavily traded currency at this time. These sessions tend to be popular with many private traders who like the quieter market and associated lower volatility which accompanies trading at this time.

It is important if you want to increase the profits that you make from your trading that you get to know the best currencies and strategies to trade in each of these sessions. This will help you to both maximise your trading potential and avoid taking on undue trading risks on your account.