Forex

What are the best Forex trading hours?

What are the best Forex trading hours?

It is very good to know the right and best time to trade Forex, because it is a very crucial component of a perfectly good and effective Forex trading. During the trading week, the Forex daily is open all day, but not just because it’s always open it means that prices are always moving in a way that makes a particular market worth it. Profits are earned in the Forex market when the market is volatile and moving, not when the market is calm.

What are the Forex market trading hours?

It is known that the Forex market hours are 24 hours a day a week, but the market is closed on weekends. Also, this continuous Forex trading is possible only as foreign exchange trading is continuous in all countries of the world in places known as decentralized.

The Forex market hours are divided into four main Forex trading sessions:

Sydney

Tokyo

London

New York

The former positions are the largest Forex trading positions, controlling approximately 75% of the total daily volume of Forex trading in FX.

The Forex market opens at 10pm UTC on Sunday – when the Sydney trading session begins – until 10pm on Friday and when the New York trading session closes at the end of the week.

What are the most active times for Forex trading?

Therefore, all Forex traders should know the most active times for trading Forex, as this will help them very greatly in timing both their entries and exits as they navigate the markets. It is known that the two most active Forex trading sessions are the London trading session and the New York trading session, as during those sessions, the price movement is in the best trading environment. Often the Asian Forex trading session has the lowest price volatility and therefore the probability of major price movements within the Forex currency pairs.

The Forex trading market has three distinct trading sessions; Where trading begins in Australia and Asia, trading moves around the world to Europe and ends at the end of the day in North America where Forex trading is closed every day in the New York session. Here are the Forex trading hours:

  • Asian Forex Trading Session: The Asian Forex trading session opens at 6:00 PM and is affiliated with EST and closes at 4:00 AM at the same time.

  • London City Forex Trading Session: The London Forex Trading Session opens at 3:00 AM following EST and closes at 12:00 PM at the same time.

  • New York Forex Trading Session: The New York Forex trading session opens at 8:00 AM following Eastern American Time and ends at 5:00 PM at the same time.

As you can see from the above dates for the times of the Forex trading hours, as there are daily periods in which the trading sessions overlap with each other. In these periods when volume is high and price volatility usually reaches peak levels.

We find that the trading sessions extend in both London and the New York trading session from 8 in the morning until 12 in the afternoon and it follows the Eastern Standard Time, and this is usually considered one of the best times to trade Forex.

The reason why it is considered one of the best Forex trading times is that this happens when the number of the most active trading centers in the world intersect.

As the end of the Forex trading in the London trading session approaches, the New York trading session opens, and the two are open at the same hour for a full 4 hours each Forex trading day. As a result, many of the trades are traded very strictly by traders during the 4 hour session window because it generally brings them the best liquidity and the right price volatility.

Best time to trade and why?

You will find that there is a difference between the opening and closing times of trading sessions also during the month of October, during the month of November, during the month of March and the month of April, as you find that some countries switch their timing to Daylight Saving Time.

You will also find that the date of the session on the day of this month in which the country switches to daylight saving time and vice versa varies, which confuses you even more. So this should be kept in mind if you are a trader and plan to trade Forex during that time period in this country.

So dealing with daylight saving time trading is annoying and confusing but this is what happens when the Forex market is always traded!

However, the best time to trade Forex depends mainly on the type of currency pair that the trader is looking for. As an important general rule, most of the liquidity of each currency pair will occur when it overlaps in currency pair sessions – if both sessions and positions are open at the same time.

For example, the GBP/USD will see higher Forex trading volume when the Japan Forex trading sessions and the New York Forex trading session are both open.

It is also important for a trader to realize that their very high trading activity will also cause their Forex Volatility Index to rise. While there is a trader who loves the opportunity volatility can give him, you will find another trader who does not like it and does not, but either way, it is absolutely essential that the trader has a Forex risk management strategy in place.

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