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Forex Market Hours in India: A Comprehensive Guide

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The foreign exchange market in India remains open from 9 am to 5 pm; however, cross-currency trading continues till 7:30 pm. But to understand the forex market in India, we need to understand this market globally.

The biggest centres of forex trade internationally are London (the United Kingdom), New York (the US), Tokyo (Japan), and Sydney (Australia). Of the biggest centres of forex trade, only Tokyo is in Asia.

The forex market worldwide is mostly decentralised and unregulated. The time zones of various centres of forex trade are different, as they are spread all over the world. Therefore, the forex market is open 24 hours on weekdays.

The two biggest centres of forex trade are London and New York. As a result, this market is the most active when the trading sessions of these two centres overlap with each other.

Highlights

Forex market timings in India and the status of the market

How can traders participate in the Indian forex market?

Conclusion

Forex Market Hours in India and the Status of the Market

As mentioned above, the forex market remains open from 9 am to 5 pm in India. That said, India does not account for a significant share of the global forex trade.

The timing for over-the-counter (OTC) currency trades, which include forex derivatives, is from 9 am to 3:30 pm in India. In the OTC market, traders can trade contracts like spot, swap, forward, and call and put options.

Apart from the OTC market, the forex market in India also offers exchange-traded currency derivatives. Under this, traders can trade in future contracts and options on four-rupee pairs, including EUR-INR (Euro-Indian Rupee), USD-INR (US Dollar-Indian Rupee), GBP-INR (Pound Sterling-Indian Rupee), and JPY-INR (Japanese Yen-Indian Rupee). To trade in such contracts, the exchanges remain open from 9 am to 5 pm.

The Indian market offers other options too for traders. If they want to trade in currencies of countries apart from India, they can trade in cross-currency futures and options on currency pairs, such as GBP-USD (Pound Sterling-US Dollar), EUR-USD (Euro-US Dollar), and USD-JPY (US Dollar-Japanese Yen).

Trade in such contracts depends on overseas markets; hence, their trading hours are a bit extended, from 9 am to 7:30 pm.

Forex Market Trading Sessions

The forex market runs continuously from 9:00 PM UTC on Sunday to 9:00 PM UTC on Friday. Indian traders can benefit from knowing the forex market hours across major hubs like Sydney, Tokyo, London, and New York. The London session accounts for 38% of global forex trading volume, making it the most significant, while the overlap between the London and New York sessions—12:00 PM to 4:00 PM UTC—is ideal for liquidity. This period is often the best time to trade forex in India.

Major Market

Forex Market Timings (in UTC)

Sydney

9:00 PM to 6:00 AM

Tokyo

11:00 PM to 8:00 AM

London

7:00 AM to 4:00 PM

New York

12:00 PM to 9:00 PM

The currency trading hours overlap during the European and US sessions, offering the highest liquidity. The US dollar dominates 88% of forex trades, followed by the Euro and Yen, making this a critical window for currency trading in India.

Indian Forex Market Timings

India's forex market operates during the global forex market hours, with trading starting from 9:00 AM IST to 5:00 PM IST, which aligns with several international sessions. However, the currency trading hours most beneficial to Indian traders often fall outside these local hours, particularly when the London and New York sessions overlap, providing the best time to trade forex in India. This is when the market sees the highest forex trading volume, offering better liquidity and opportunities to profit from price fluctuations.

Indian investors looking to trade forex in India can participate in international markets through SEBI-regulated platforms. Despite Indian forex markets being open from 9:00 AM to 5:00 PM, many traders prefer to focus on the overlap between the London and New York sessions, as these are peak trading hours for the global market, where volatility is higher, allowing traders to maximize their gains.

The key forex market timings are divided into four major sessions: Sydney, Tokyo, London, and New York. For Indian traders, the most active period typically falls during the London and New York session overlap (from 12:00 PM to 4:00 PM UTC), which corresponds to evening hours in India. This overlap accounts for nearly 50% of the total forex trading volume globally, making it the prime window for Indian traders to execute trades.

While Indian forex markets are operational during standard business hours, the best time to trade forex in India is usually during the late afternoon and early evening, aligning with the most active global markets. Traders should consider the forex market timings carefully, focusing on when the market offers the most liquidity and volatility, particularly during the London and New York session overlap, to enhance their currency trading strategies.

Forex Trading Volume

  • Global Trading Hours: Forex operates 24/5, with different sessions contributing to overall forex trading volume. The major sessions are Sydney, Tokyo, London, and New York.

  • London Session: The London session leads with 38% of global trading volume, making it the largest market for currency trading in India and worldwide.

  • US Dollar Dominance: The US dollar is involved in 88% of all forex trades, highlighting its central role in global currency trading hours.

  • Best Time to Trade Forex in India: The most liquid period occurs during the overlap of the London and New York sessions, making it the best time to trade forex in India.

  • Peak Trading Hours: High trading volumes are observed during 12:00 PM to 4:00 PM UTC, aligning with the forex market timings best suited for Indian traders.

  • Indian Traders: Indian traders can take advantage of these key hours by aligning their strategies with global forex market hours and focusing on high-volume periods to trade forex in India effectively.

When is the Best Forex Market Hours in India?

The best time to trade forex in India typically coincides with the overlap between the London and New York sessions. This overlap occurs from 12:00 PM to 4:00 PM UTC, which translates to late afternoon and early evening in India. During this period, the market experiences high forex trading volume, making it ideal for Indian traders to capitalize on market liquidity and price movements.

While Indian forex markets are open from 9:00 AM to 5:00 PM IST, traders often prefer to trade during global peak trading hours, particularly during the overlap between the major sessions. These are the hours where liquidity is highest, giving traders better opportunities to execute profitable trades in line with global forex market hours and currency trading hours.

How to Trade in Rupee in Forex Market?

  • Select a Regulated Broker: To trade forex in India using INR, you need to choose a SEBI-regulated broker that offers access to currency pairs involving the Indian Rupee (INR), such as USD/INR or EUR/INR.

  • Understand Trading Hours: Indian forex markets are open from 9:00 AM to 5:00 PM IST, but the best time to trade forex in India is usually during the overlap of global forex market hours, particularly during the London and New York sessions.

  • Track Forex Market Timings: Keep an eye on forex market timings to identify the periods of highest forex trading volume. This will help you take advantage of liquidity when trading INR pairs.

  • Utilize Trading Platforms: Use the broker’s trading platform to monitor currency trading hours, place orders, and manage trades effectively in INR pairs.

Leverage Global Trading Volume: While INR pairs might see less liquidity during off-peak trading hours, global forex trading volume spikes during the European and US sessions, providing more opportunities for profitable trades.

How Can Traders Participate in the Indian Forex Market?

In India, traders can trade forex on exchanges, like the NSE, BSE, and MCX-SX. That said, the values fluctuate a lot in this market; therefore, they need to be careful.

Meanwhile, it should be noted that forex trading platforms are prohibited in India. Traders can deal in currencies, but there are quite a few restrictions. For example, they need to ensure that Indian Rupee (INR) is the trading currency.  For trading, they can couple only four currencies with INR, including USD, GBP, JPY, and EUR.

While the forex market is indeed complex, retail investors have to be extra careful. This is because, unlike institutions, they may not have the wherewithal to deal in such a market.

The Reserve Bank of India (RBI) does not allow retail investors to trade in forex for speculative purposes. There are only limited purposes for which the RBI allows retail investors to deal in forex. So before trading in forex, retail investors need to read the law carefully.

Conclusion

Forex markets tend to be a lot more complex than stock markets. This is because the forex market of one country is much more linked with that of another country than the stock market of one country is linked to that of another country.

Besides, when it comes to stock-related investments, the underlying is usually a company’s performance. It is tough to understand the underlying of a currency; the underlying can be a country’s financial situation. However, currency values depend a lot on regulations and many other factors.

Therefore, unless you are a highly sophisticated investor, we will advise you to avoid forex markets. That said, if you indeed decide to invest in forex, you should keep in mind factors, such as the timings of a certain forex market, values of respective currencies, laws pertaining to forex trade of countries, etc.

simple trick to quickly classify the option between ITM, OTM, and ATM is to compare the strike price with the spot price. In the case of call options, if the spot is higher than the strike price, it is an ‘in the money’ option, and if it is lower than the strike price, it is an ‘out of the money’ option. For put options, if the spot price is lower than the strike price, then it is an ITM option and if it is higher, then the option is OTM. When spot and strike prices are equivalent, the options are ‘at the money’.

 

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

Is Forex trading 24 hours in India?

Answer Field

No, forex trading is not available 24 hours in India. The forex market hours in India operate from 9:00 AM to 5:00 PM IST. However, global currency trading hours run 24/5 due to overlapping sessions in different time zones, giving Indian traders opportunities during key international trading sessions.

What are the 4 main Forex trading times in India?

Answer Field

The four major forex trading sessions are Sydney, Tokyo, London, and New York. Indian traders often monitor the forex market timings for these, with the best time to trade forex in India typically during the overlap of the London and New York sessions (12:00 PM to 4:00 PM UTC).

When is the best time to trade Forex?

Answer Field

The best time to trade forex in India is during the London and New York session overlap, where forex trading volume peaks globally. This period, from 12:00 PM to 4:00 PM UTC, offers the highest liquidity and volatility, providing ample opportunities for currency trading in India.

How do time zone differences affect Forex trading?

Answer Field

Time zone differences affect forex trading hours by influencing when traders can access peak market activity. For Indian traders, the timing of global sessions such as London and New York affects the best trading hours, as they coincide with evening time in India, offering higher forex trading volume.

What is commodity market timing and why is it important?

Answer Field

Commodity market timing refers to the specific hours when commodities are actively traded on exchanges. Understanding these timings is crucial, much like knowing forex market timings, as both markets experience fluctuations in liquidity and volatility during peak trading hours. Just as traders look for high forex trading volume during major forex sessions, commodity traders should focus on active hours to optimize their strategies for better price movements and liquidity.

What are some common mistakes in commodity market timing?

Answer Field

Common mistakes in commodity market timing include trading during low-liquidity hours, ignoring key market sessions, and failing to account for external factors like global events. Monitoring forex market hours and trading during high forex trading volume times can help mitigate these errors in both forex and commodity trading.

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