Ever wondered when are forex trading hours?

Forex market is an ever exciting and dynamic trading environment. Currencies are traded 24 hours a day, from Sunday afternoon EST* (Eastern Standard Time) to Friday afternoon EST. Traders new to the world of foreign exchange tend to think that since the market is open 24 hours a day, they may trade whenever they choose during the day. Although this preconceived idea is actually true, however some hours present better opportunities than others. By better opportunities, we mean of course potentially greater profit.

So what are the most suitable forex trading hours and why?

Usually, the best time to enter forex markets is when large volumes of currencies are traded. At those hours, traders can take full advantage of forex benefits. Those hours are usually the time when the forex market is the most active and has thus the largest volume of trades and the biggest pip movements. It is when currencies are the most active that traders have a better chance of making some profit. Slow markets offer little chances of profit and therefore, forex traders usually stay out of them. Find out how you will never miss out on another profitable trading opportunity again…

When do forex trading times overlap?

From the above table, we can see that New York and London overlap from 8 am to 12 am (EST), Sydney and Tokyo overlap from 7 pm to 2 am, London and Tokyo markets overlap one hour, from 3 am to 4 am.

What does this mean?

Trading EUR/USD, GBP/USD, or USD/CHF between 8 am and 12 am (EST) can lead to good results since Europe and America are both active at the same time. Another good time to trade is from 1 am to 3 am EST. As you can see in the table above, at that time, European markets are waking up while Asian markets are closing, offering good trade opportunities. The same goes for the 7 pm to 10 pm EST time period, when the Asian and Australian markets overlap. Also, you have probably noticed that from 4 pm to 6 pm EST, there is no interesting overlap. That’s when the US markets close without overlapping any other large market. At those hours, the volume of trades is much lower, offering less great trade opportunities.

While some hours of the day are busier than others, price fluctuation varies from day to day. As a general rule, some days of the week are busier than others. Generally speaking, it is during Tuesday and Wednesday Forex Trading Sessions that we see the widest pip variation for all majors. Find out how to take your forex trading to the next level and make money while you sleep…

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