Best Market Hours to Trade the Forex Market

The Foreign currency exchange industry, the Forex, is a global market. People of one country exchange other countries’ currencies with theirs or another one’s. Though the market is praised for being an around the clock trading platform, not all portion of a day yields a high profit for a specific region. In the process of being a professional in the industry, every enthusiast should know the most profitable to enter the market.

Best Hours to Trade for Global Investors

It’s no wonder that the currency share market is the world’s most volatile trading platform. However, this volatility rate doesn’t remain high all day. Besides, the volatility rate of a pair depends on the regions those currencies represent. For day traders, knowing about the different time and regional zones and their respective impact on different pairs is vital. Without having a thorough knowledge of such an impact, he cannot make constant money across the entire day.

What are Sessions for Forex Trading?

The whole currency exchange platform is formed with four primary business sessions: the NY session, the London session, the Sydney session, and the Tokyo business session. Let’s see the start and end time of this session considering the GMT as the corresponding unique fixed time.

  • The Sydney Session opens at 10 PM in the Summer & 9 PM in the Winter and closes at 7 AM in the Summer and 6 AM in the Winter.
  • The Tokyo Session starts at 11 PM and closes at 8 AM.
  • The London Session opens at 7 AM in the Summer & at 8 AM in the Winter and closes at 4 PM in the Summer and at 5 PM in the Winter.
  • The NY Session opens at 12 PM in Summer & at 1 PM in the Winter and closes at 9 PM in the Summer and 10 PM in the Winter.

So, these are the biggest economic hubs in the entire world.

Best Time to Trade in Forex

It depends on the local time of a trader. The one who lives in Africa finds the market most profitable in different parts of the day than those who live in Japan.  Get more info about the different trading environment at Saxo and trade like the UK professionals.

Simply put, the liquidity and the fluctuation of the price movement vary from region to region.

It becomes less active during a Sydney session and picks the highest momentum as soon as the Tokyo session starts. The platform becomes the most liquid during a London session. The NY session also observes higher activities.

Furthermore, the most favorable time to trade also relies on the currency pair one chooses to trade.

1.      Africa

South African and Nigeria cover the majority of the exchange volume of this region. Their active hour and time-zone follow the London session. So, trading during the London session is highly recommended to the African people.

2.      Asia

This region experiences diverse, active hours. Those who live in Japan should follow the Japanese session, whereas the inhabitants of NZ, Australia, should engage in the Australian or the Tokyo session.

3.      UK & EU

Market joiners of these areas should undoubtedly respond to the London session. However, the Frankfurt zone goes through the extent of volatility.

4.      America

Without even mentioning, the American people should trade in accordance with the NY session, especially when the fluctuation reaches its highest.

Before considering the technical and fundamental systems of analysis, one should know a fact. Either of these systems doesn’t properly work during low activity and low liquidity.

Getting a clear idea of all the sessions and their ways of affecting the Forex industry will enable a trader to make a more well-informed decision. It always advisable for the newcomers to practice with a demo account before they enter the real market. So, they will have a comprehensive idea of the platform and enjoy an edge when trading.

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