Eye on the forex trading hours of the day

Filed in Forex Strategies by on January 12, 2009 2 Comments • views: 570

Create a Forex account and indulge in a 24-hour FX experience. Trading starts every Sunday afternoon (Eastern Standard Time) and ends every Friday afternoon (Eastern Standard Time).

Thus in such way, currencies are traded 24/7; and through this market activity, there would always have at least a financial center open for business. Currencies are continuously traded as the Forex Trading hours overlap. This means that Forex practically doesn’t stop.

Novice traders in the FX world often think that since the market’s always open, they can trade whenever they want during the day. Although this is a connotation and a preconceived idea, clarifications are still needed. In Forex trading, there are hours that give better opportunities to Forex traders. These are usually the best hours or the best times to enter the Forex market; since large volumes of currencies are being traded between countries at the same time.

In every time zone around the world, Forex markets opens from 8AM and closes at 4PM; and they say that the best 24-hour FX experience is within the hours that the market hours of countries overlap. These are the most active hours in the Forex market; that the largest volume of trades happen.

It’s the time when the biggest pip movements occur, allowing the most active traders better chances of gaining profit. However in a slow market, there’s little chance of profit. This is the main reason why experienced traders always stay away from such stagnant markets.

To know the times when the markets overlap, a trader should closely monitor these hours in all the main financial centers across the globe. After having located at least two trading sessions that overlap, it is best to do the trade for such currency during these times. Hence, active currencies often lead to good results in the Forex market. Greater chance of making significant profit occurs during such period when the largest of trades happen.

Other good hours to trade are the times when the European markets are opening and the Asian markets are closing. During these times, good trade opportunities are most possible. It also goes with the overlaps in Asian and Australian markets. Thus, in the 24H Forex Trading experience, certain hours allow better chances for profit than others since price fluctuation varies daily.

This means that Forex activities are greater during the hours that the market is busier that the rest. Whether in Tokyo, London or the United States, pip movements tend to be greater as the day moves to the middle of the week. In other words, it’s usually during Tuesdays and Wednesdays that the widest pip variation happens in the Forex Trading market. In these trading hours, liquidity tends to increase since more traders are participating in the FX market.

So for better profit, it is important to stay updated with these major Forex trading hours – the first hour reveals trends of how the sessions would develop and the overlapping trading hours most of the time results in liquidities that increase.

Comments (2)

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  1. forex says:

    Forex trading can be a challenging task to do without proper knowledge and experience. It’s always better to test drive your system in a demo account/paper trade before going live.

  2. Find Niches says:

    Glad I found this site – I’m finding the content very useful – thanks!

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