Optimal Foreign Exchange Trading Periods - When It Is Actually Advised To Be Active In Forex Markets?
So what are the right foreign exchange trading times? The forex market is open day and night during the business week, but this does not inevitably mean that all of those 24 hours are beneficial for trading. There is a lot more action on the forex markets at specific times of the day and in most cases the best times to buy and sell are when the exchanges are busiest.
The two primary trading floors for currencies are London and the US markets. Although the UK does not use the euro, most eurozone countries are within one hour time deviation from the UK, as is Switzerland. US time zones also include Canada. So the London session and the US session in between of them cover most of the primary currencies that are traded.
The London session starts at 8 a.m. UTC and finishes at 16.00 UTC. The currency crosses that are most active during this session are the Euro, British Pound and US Dollar which is takes part in the vast majority of all deals.
The US trading starts at 13.00 UTC (8.00 EST) and finishes at 10 p.m. UTC (17.00 EST). The most traded currencies during these times involve the US Dollar, EUR, British Pound, AUD, the Japanese Yen and CAD.
The strongest exchanging time, as you might expect, is throughout the three hours when both of these sessions overlap and the exchanges are open in both London and New York. This time overlap runs from 13.00 to 16.00 UTC (8 a.m. to 11.00 EST).
If you like to leave your orders open over several days it would not make so much difference to you knowing the busiest periods on the markets. But if you are involved in currency day trading where you might open and close a trade within a very short period, you will find most opportunities popping up during the most active hours.
If you are trading a cross rate, i.e. a currency pair that does not include the US dollar, you might have another window of time when the financial markets in both countries are open for business.
For example if you were trading AUD/JPY you could find that trading was good during what is called the Asian session. The Australian and Japanese trading hours are quite close and on a day when activity was anticipated you might find some winning trades during the overlap. However, normally this is a not so active session for just about all currencies.
Thus the most suitable time for most foreign exchange traders is during that 3 hour window in the morning in the US and the afternoon in the UK and Europe, when the exchanges are open on both sides of the Atlantic. Trading can be frantic during those hours, there is maximum volatility and the currencies move far and fast. Most the important economic news is released during this period too, in particular toward the beginning. So these hours are the most beneficial forex trading times if you want to grab quick profits.
Whatever the time zone you are being active as a trader in, you will need a profitable forex trading system. If you don't have a proprietary strategy, use forex signals from an accurate forex signal provider. This way you can make profits in any markets and any time.
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