Best Time To Trade Forex In South Africa – Understanding the best time to trade forex in South Africa depends on several factors. In this article, we will cover the different Forex market sessions and explain how to choose the best time to trade forex.
Online international forex market trading in South Africa is available 24 hours a day, 5 days a week, Monday to Friday. The global Forex market opens and is open for trading on Sunday at 11:00 PM in South Africa and closes at 11:00 PM on Friday.
Best Time To Trade Forex In South Africa
Depending on the trader’s choice and strategy, positions can be held overnight or for days. Many South African online traders starting their trading journey wonder when is the best time to trade and more importantly, why…
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The Forex market can be profitable during the most active trading conditions because spreads are low and market movements are increasing. This can be seen when the London session opens, as there is often a large trading volume and therefore good volatility. The same can be said for the opening bell of the US session, which brought a lot of liquidity to the market.
The first aspect of trading in the international Forex market is to determine which market to trade (EUR, USD, GBP, CHF). Once you decide which session and which currency pair to trade, you can determine when the market will be actively bought domestically.
It is therefore important for South African traders to be aware of time zone differences and plan trading strategies accordingly.
If you are trading with the goal of closing your position after a few days, weeks or months, this open/close time should not affect you much. Traders to watch out for are scalpers and day traders.
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As traders we want volatility in the market, just because a market is always active doesn’t mean they are volatile.
Volatility occurs when the exchange is open and investors influence market movements by processing large orders. It is therefore important to note when specific markets open compared to South African time.
The risk of holding positions when different market sessions overlap is large market moves that can negatively impact your open trades.
For example, if you trade AUD/USD from 9:00 AM SAST, you may find that the market moves slower than others due to the fact that this country (Australia / United States) is not open for exchange; however, when the US session opens, your position will be called in a different direction once liquidity enters the market.
Forex Trading In South Africa
When trading in South Africa we need to identify the market that will provide the most consistent volatility throughout the day, we actively monitor our trades.
Therefore, trading markets such as GBP, ZAR and EUR will be recommended due to the small time zone gap as the EUR/GBP market opens at 10:00.
For example, if you want to trade the USD pair, you would want to start your trading day around 3:30 PM when the US session opens.
Trading in the relevant market sessions allows you to reduce your risk by anticipating volatility and keeping your position in mind with a trading plan to know when to start closing.
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The best time to trade gold in South Africa is when the market is most active and volatile. This can be seen when the London session opens, as there is often a large trading volume and therefore good volatility. The same can be said for the opening bell of the US session, which brought a lot of liquidity to the market.
It is then important for savvy South African traders to pay attention to time zone differences and plan their trading strategies accordingly.
As traders we want volatility in the gold market, just because the market is always active doesn’t mean they are volatile.
The risk of holding a gold trading position when different market sessions overlap is a large market move that can negatively impact your open trade.
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When trading a commodity like gold, it is important for traders to understand the factors that can affect its price.
Gold is a precious metal that is often used as a hedge against inflation and economic uncertainty. Several factors can affect the price, including:
By understanding these factors, traders can better understand how they can influence the price of gold and make informed trading decisions.
This is usually between 10:00 and 16:00. During these hours, South Africans can catch the last two trading hours of the Tokyo session, which coincides with the opening of the London session, and a few hours later, this session coincides with the opening of the US market.
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The London and US sessions are generally the most active trading hours, as all market participants have some influence on the currency market. This session is prone to important economic news and data releases that can have a positive impact on the exchange rate.
By understanding market sessions, you can identify suitable forex strategies based on market activity in that session. Volatile market sessions and major currency pairs are ideal for practicing forex scalping strategies if your risk appetite can handle it. CFDs are complex instruments and there is a high risk of losing money quickly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to risk losing your money.
One of the many advantages of the Forex market is that it is open for trading 24 hours a day. Unlike the stock market, the foreign exchange market operates during normal business hours from three business centers spread across different time zones. Traders have the freedom to trade whenever they want depending on their interests.
Objectively, there is no best time for a trader to trade Forex – it all depends on individual preferences, goals and trading strategies. In this article, we’ll take a look at different currency pairs in different parts of the world, and in addition, how it affects your trading. We will also focus on two key fundamental forces – supply and demand – to determine the best time for you to trade Forex.
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Liquidity – being able to find a counterparty for every transaction – can be a problem in some financial markets, but not in Forex. Although liquidity is not relevant when choosing the best time to trade forex, it is worth noting for basic knowledge. Most retail traders always trade with marketing brokers who are willing to execute orders for them.
In this case, the problem can arise only when the broker himself faces problems with filling orders at Interbank. An example of this happened on January 15, 2015, when the Swiss National Bank raised the share of the euro in the movement of the CHF – a gap is a gap for all. Forex is a true liquidity miracle, and price gaps are so rare that novice traders usually need several months of trading before they see them with their own eyes.
Volatility looks at how strong price movements can be at a given hour of the day, and it varies greatly in the currency market for each pair and at each hour of the day. It is very important for traders to be able to understand volatility, as most trading strategies are not suited to periods of high volatility. Market tests clearly show that adjusting a trading schedule to a strategy’s preferred volatility can make the difference between big losses and big gains, all things being equal.
For example, an oscillator-based trading strategy that best matches the market and looks for “bounces” from key levels will not benefit from breakouts caused by high volatility. When creating or reviewing a strategy, know the level of volatility to use and apply it accordingly. Volatile times are not always the best time to trade Forex.
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Why does the level of volatility vary by instrument, by day, and why does the price fluctuate so much? The answer simply depends on supply and demand. The market, Forex or anything else for that matter, is driven by the number of unfilled orders. The more they are and the bigger the volume, the more volatility there will be in the market. Now let’s see who are the main drivers of the market.
Institutions place the largest orders in the largest quantities and between specified times. Unlike private traders who have the freedom to trade when they choose, institutions operate according to the business hours of global trading capital. For this reason, the 24-hour Forex trading day is divided into three international trading sessions – Asia / Pacific, London / Europe and North America.
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