Best Forex Trading Hours

Is there really Best Time to trade or just a theory? The unfold in the foreign exchange (forex) market and the profit which a forex trader makes depends to some extent on the time when he chooses to trade. Hence forex traders, specially these who are new to forex trading would like to locate out the Best Forex Trading Hours. Experts claim that the most suitable time for trading forex is when the market activity is highest, considering the fact that the difference between the bid and ask prices, the trading spreads will reduce to the lowest level. During this period, the forex brokers, market makers make less money, and the forex traders can make a higher profit for themselves.

Largest forex exchanges.

The largest forex exchanges in the world are Tokyo, London, Sydney, and New York exchange. It is necessary for Forex traders to keep in mind when the working hours of these exchanges and when more than one exchange is open. If the timings of the multiple exchanges are open, the trading quantity increases, adding to the volatility, the rate of increase of the currency prices. Forex traders can benefit from these factors. Though investors commonly do not like volatile markets, in forex, high volatility outcomes in more opportunities to make a profit

Best Times for trading in Forex

For most forex traders, the best time to trade is the four hour period when both the London and New York exchanges are open from 8 am till 12 noon (EST). More than half the forex trades take place at these exchanges. On the other hand, from 5 pm to 6 pm (EST), most of the trading takes place at the Sydney, Singapore exchanges which have a far lower trading volume. The expected trading volume assumes that there will be no information affecting the forex market. If there is a military or political crisis, there may also be an increase in trading volume, volatility even during the timings when the market is typically slow, so forex traders can make a profit.

Many traders who are new to foreign exchange (forex) trading spend a lot of time researching. Unlike the stock markets which are open only during business hours, the forex market is open all the time, so many first time traders will work long hours, However, this can use up the trader’s savings, and also depart the trader mentally drained. Hence the trader need to understand the timings of the forex markets worldwide, activity and plan their schedule accordingly so that they can get the best results working realistic hours.

Unlike stock markets, the forex market worldwide is linked and is open from Sunday 5 pm EST to Friday at 5 pm. If two or more of the four major forex markets are open, the trading volumes will increase, and the currency pairs are more likely to fluctuate. If solely one market is open the spread for the currency pairs is restricted to 30 pips. However, when two or markets are open, the forex spread might also be greater than 70 pips, particularly when major news associated to the economy is released.

Forex Markets timings worldwide

There are 15 independent exchanges worldwide which are open each week from Monday till Friday. The traders hours for every exchange are different, but for most forex traders, the important timings in Eastern Standard Time are listed below (forex market session times):

Though every exchange is independent, the same currencies are traded on all the exchanges. Hence when two or more exchanges are open, there is a major increase in the volume of the purchase and sale of currencies by traders active on these exchanges. The bid and ask rates for currencies in one forex exchange will affect the rates in all other exchanges which are open, making the market more volatile and reducing the spread. The windows for the most important exchanges are:

The Best forex session to trade

After a lot of research, specialists have noticed that for making a profit, European currencies need to be traded during the period when predominant markets are closed, using a strategy for range trading. This corresponds to trading between 7 pm to 11 am UK Time. Hence the change filters should be set accordingly. The identical strategy is not effective when the Euro currencies are unstable during peak trading hours. Making a profit Range trading in Asia-Pacific currencies is more challenging since the periods when currency rates are incredibly unstable and much less volatile are less surely defined compared to European currencies.