Optimal Currency Trading Periods - When It Is Actually Wise To Be Active In Forex Markets?
So what are the best currency trading times? The forex market is open 24 hours a day throughout the business week, but this does not inevitably mean that all of those 24 hours are good for trading. There is considerably more action on the foreign exchange markets at specific times of the day and generally the appropriate times to buy and sell are when the markets are busiest.
The 2 largest trading floors for currency trading are London and the US markets. Even though the UK does not use the euro, most euro lands are within 1 hour time difference from the UK, as is Switzerland. US time zones also include Canada. Accordingly the London session and the US session in between of them cover most of the important currencies that are traded.
The London session starts at 8.00 UTC and ends at 4 p.m. UTC. The currency pairs that are most active during this session are the EUR, GBP and USD which is engaged in the majority of all transactions.
The US session gets started at 1 p.m. UTC (8.00 EST) and finishes at 22.00 UTC (17.00 EST). The most traded currency crosses during these times involve the US Dollar, EUR, British Pound, AUD, JPY and the Canadian Dollar.
The busiest trading time, as you might presume, is in the three hours when both of these sessions overlap and the markets are active in both the UK and the US. This period runs from 13.00 to 4 p.m. UTC (8 a.m. to 11.00 EST).
If you like to leave your orders open over several days it may not make that much difference to you being aware of the busiest times on the markets. But if you are engaged in currency day trading where you might open and close a trade within a very short period, you will find most opportunities coming up within the busiest hours.
If you are involved in a cross rate, i.e. a forex pair that does not include the US dollar, you might have another window of time when the financial centers in both countries are open for trading.
For instance if you were trading AUD/JPY you might find that trading was satisfactory during what is called the Asian session. The Australian and Japanese trading hours are pretty close and on a day when activity was foreseen you might find some profitable trades within the overlap. However, usually this is a slower session for nearly all currencies.
Therefore the best time for most currency traders is during that three hour window in the morning in the United States and the afternoon in the United Kingdom and Europe, when the markets are open on both sides of the Atlantic. Trading can be overheated during those hours, there is maximum volatility and the currencies move far and fast. Most the important financial news is broadcasted during this period too, particularly toward the beginning. So these hours are the best forex trading times if you want to make 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 money in any markets and any time.
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