Though the forex market is a global market that is open 24 hours a day, it is not without constraints: most trading occurs in certain hubs, known as money centers. Moreover, each hub enjoys greater activity during certain hours of the day, and focuses on certain currencies. This information, outlined below, is important for active traders to bear in mind as they trade forex throughout the day.

New York. New York City is the primary money center in the United States. It operates during normal banking hours in the United States, from around 8 AM EST to 5 PM EST. Trading in the US dollar is particularly active during the first half of the day -- from approximately 8 AM to 12 PM.

London. Like New York, London is a city with a rich banking history, and thus has been an active money center for quite some time. As it resides in Britain, London is a prime spot for trading the British pound. Its proximity to the Eurozone makes it a money center in which Euros are heavily traded as well. The close of the London market overlaps with the open of the New York market.

Hong Kong and Tokyo. Hong Kong and Tokyo are the primary money centers in Asia and the Eastern hemisphere. In addition to being active centers in the trading of the Japanese yen, the money centers are also where the Australian dollar and New Zealand dollar enjoy greater trading activity. Hong Kong and Tokyo start as New York is closing, and close as London is opening.

Highly active traders that are in need of highly active markets can benefit from this information by scheduling their trading day around the money centers that focus on the currencies they trade.

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