As we all know, the Forex market is a highly liquid and dynamic market, which offers many opportunities to gain profits from the trades since the price varies, even in one single minute. If you are familiar with Forex market, you would know Forex trading is open 24 hours a day. Does that mean you should trade Forex at any time you want? Is there “golden time” for Forex trading? Your questions would be answered if you read carefully as below.
Forex trading tip 1: Make use of Forex trading time in different Forex sections
When we consider the working hours of the market, we should know that there are three major Forex markets- London, New York, and Tokyo. The global Forex market operates throughout the whole day, starting from Sunday 5pm (EST) to Friday 4pm (EST).
Typically, a Forex trading day starts with New Zealand, before moving across to Australia, Japan and Asia, Europe and North America. The UK and the US markets account for around half of the total world market, therefore the times at which both are open are particularly busy.
Let’s quickly look at the Forex trading time in the major Forex markets:
New York Forex Market trade times: 8am – 4pm EST
London Forex Market trade times: 2am – 12Noon EST
Tokyo Forex Market trade times: 8pm – 4am EST
Australia Forex Market trade times: 7pm – 3am EST
London Forex Market trade times: 2am – 12Noon EST
Tokyo Forex Market trade times: 8pm – 4am EST
Australia Forex Market trade times: 7pm – 3am EST
Forex trading tip 2: Choose the “Rush Hour” to trade Forex
Like in other financial markets, there are also good times and bad times to trade Forex. It is better to enter into the forex market when the activity or the volumes of transactions on Forex markets are the highest. In other words, choose the “rush hour” to trade Forex.
Statistics shows, during the overlap period of major markets, the Forex Trading activities are the heaviest and the volume of transactions reaches its peaks. Nearly two-thirds of New York activity occurs in the morning hours when European markets are also open.
Forex trading tip 3: Choose to trade when the market is at its best
Choosing to trade Forex when the Forex trading market is at its best can increase efficiency and generate significant financial benefits. The Forex trading market is open 24 hours a day doesn’t mean that it is always active. You can make profit no matter the market is going up or going down. It will be very difficult to make profit when the market doesn’t move at all. Moreover, researches show that during the middle of the week (Tuesdays and Wednesdays) the movement of all major currency pairs reaches their highest.
The time for trading Forex is important for your strategy of trading Forex. If you can’t trade Forex during specific hours, you can use automated Forex trading software to execute these trades.
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