Best Time To Trade Currency Pairs – The Forex market is open 24 hours a day, 5 days a week. In other words, it is a sleepless market.
For day traders it provides many opportunities to trade or make profits at any time of the day. But that doesn’t mean you should trade anytime soon.
Best Time To Trade Currency Pairs
The forex trading time is divided into different sessions and not every time is the best to open or close your trades. While currency prices rise throughout the day, there are also quieter moments. You need price action and trends to give you opportunities to make profits.
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Price action in Forex depends on volume and volatility in the market. In the Forex market, Volume refers to the quantity traded or sold in a particular currency. And volatility refers to the speed at which prices move. If you can’t see price action, you can’t make money. The goal here is to choose the best time to trade based on your trading strategy and get the most out of your trade.
The global Forex market can be divided into three. There are three main Forex trading sessions in the world – the Asian Session; European session and American session. The world’s major financial centers represent these 3 trade sectors.
These three meetings are on business; financial institutions; Banks Markets operate when corporations etc conduct their primary transactions in their time zones. Forex market opening hours are similar to local business hours; ie open time and close time interval.
In many cases, the 2 trading sessions overlap, typically when one session closes and the other opens.
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For example: The London Session opens from 9:00am to 5:00pm (Nigerian Time) – and the New York Session opens at 2:00pm. So when the New York session is open, the London session is ongoing (but about to close). In this example, there is an overlap of 3 hours between the London and New York meetings.
When two sessions are open at the same time and overlap. Produces higher volumes. This is because participants from both time zones placed buy/sell orders. Therefore, the market may see price changes during sessions with high trading volume. Tokyo There are overlapping trading sessions between London and New York and volume spikes are seen during these times as traders from both time zones are active during those hours.
Asian markets account for about 20% of the daily forex trading volume. The main participants are traders from Japan (the third largest Forex trading center in the world by volume); Australia Traders from Hong Kong and Singapore. Open from 01:00 AM to 10:00 AM.
Worldwide The European Union is the largest financial sector in the world. Trading in this session contributes about 37% of the total daily forex trading. The main participants are from London (almost 31% of the world trade volume) and Germany. The London market opens at 8am and closes at 5pm (Nigerian time).
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After London, New York is the second largest conference in the world. The New York session contributes about 17% to 18% of the total daily Forex trading. The main participants are businessmen from America and Canada. The Forex market in New York is open from 02:00 PM to 11:00 PM (Nigeria Time).
Nigerian traders should trade during the opening hours of the London session – 8:00 AM New York session time to 5:00 PM Nigerian time.
EUR/USD Liquidity for major currency pairs like GBP/USD etc is at an all time high. Trends are common during these hours and there are many opportunities to close profitable positions in the short term. So this is the best time for day trading.
Generally, Forex trading hours also depends on your trading strategy and the currency pairs you want to trade.
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For example, if you want to trade JPY, you can also trade during the Asian session to pick moves.
So first practice on a demo account to figure out which hours of the day suit your trading strategy best. Only after finding a strategy that works. You should trade live during those hours. The Forex market is actually 24 hours a day; There are 5 days a week (weekdays) and weekends. Closed on Sundays. The market opens at 5:00 PM EST on Sunday and closes at 5:00 PM EST on Friday; This means that the market is open for a total of 120 hours and is closed for 48 hours (two days) from Friday. at night (EST).
Because people all over the world trade this global financial market; Markets are always moving, regardless of what time zone they are in. It is essentially open to all for trade. Every part of the world. Additionally, Volume and volatility levels in the FX markets vary depending on the Forex sector you are currently in.
Hours of operation may vary depending on whether Call Savings is in effect or whether it is a holiday. This means that for countries and regions that use daily savings, This means that the time will be offset by an hour in the winter months and will return to normal in the summer months. To keep this article simple; We will cover all times using Standard Time (see image below for DST and Standard Time).
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As mentioned above, the Forex market in Australia, officially opens at 8:00 a.m. EST on Saturday in Sydney. What time the Forex market opens in your particular session depends on the session you want to trade. Although there is no official opening for each session, there are key times when volume and volatility spike for each session.
The Forex market closes on Friday at 10:00 PM GMT in London. or closes on Friday at 8:00AM AEST in Sydney Australia. When the forex market is closed, it means you cannot place trades, and that means there is no actual trading for the entire weekend. The only markets that trade on weekends are the cryptocurrency markets.
There are mainly three main sessions of the forex market, starting with the Asian session (I combine Asia and Australia for simplicity); then the London/Europe sector; and finally “the American session, often called New York; session”
Also, Do you trade the stock index? Or there are special discussions with stock markets in major trading centers around the world that are particularly useful to know if the stocks and shares themselves are traded.
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As a trader, it is important to understand when the markets you trade open and close and when you can expect volume to enter the market; So you can capitalize on the movements as well as ensure that your capital is protected from trading stops. When you trade the DOW or the NASDAQ, the first 15 minutes of the New York Stock Exchange close or not. or exit positions in major pairs during the Asian session; The volatility of the London session may stop you from your orders.
In the Asian meeting, North Asia, which includes Australia and New Zealand, covers the entire Asia-Pacific region, including East Asia and South Asia. Japanese yen With the exception of pairs traded against the Australian dollar or the New Zealand dollar, this particular session saw low overall volume for many major pairs. Additionally, This is a session where you typically see increased volatility in Asian and Australian stocks and indices after trading in this session.
Asia Meeting on Monday 8:00 AEST AEST Australia; in Sydney or Japan It will officially open at 6:00 AM JST in Tokyo. That means Asia Sunday at 5:00 PM EST in New York City. New York or Sunday open at 10:00 PM GMT.
The Asian session closes at 4pm AEST in Sydney, Australia at 4pm JST; Monday at 1:00 AM EST in New York City; in New York or Monday morning at 6:00 GMT in England; In London.
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The Australian stock market opens at 10:00 AM AEST in Sydney, England. In London. The most popular traded index is the S&P/ASX 200 (XJO) on the ASX.
The Australian stock market is the country of Australia. Closes at 4pm AEST in Sydney; Monday at 1 a.m. EST in New York City; In New York, it either closes at 6:00 a.m. on Monday.
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