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Optimal Foreign Exchange Trading Periods - When It Is Absolutely Recommended To Be Active In Forex Markets?
So what are the best currency trading times? The foreign exchange market is open round the clock during the business week, but this does not automatically mean that all of those 24 hours are advantageous for dealing. There is a lot more activity on the foreign exchange markets at specific times of the day and typically the ideal times to benefit from trading are when the exchanges are busiest.
The two largest trading floors for currency trading are London and the US markets. Even though the UK does not use the euro, most euro countries are within 1 hour time deviation from the UK, as is Switzerland. US time zones also come with Canada. So the London session and the US session between them cover most of the important currencies that are traded.
The London trading starts at 8.00 UTC and finishes at 4 p.m. UTC. The forex crosses that are most active during this session are the Euro, British Pound and US Dollar which is engaged in the majority of all transactions.
The US session starts at 1 p.m. UTC (8.00 EST) and finishes at 10 p.m. UTC (17.00 EST). The most actively traded currency pairs during these times involve USD, EUR, British Pound, AUD, JPY and CAD.
The busiest exchanging time, as you may anticipate, is within the three hours when both of these sessions overlap and the currency exchanges are open in both the UK and the US. This time period runs from 13.00 to 16.00 UTC (8.00 to 11.00 EST).
If you like to leave your orders open over several days it may not make so much difference to you being aware of the busiest periods on the markets. But if you are involved in day trading forex where you might open and close a trade within a very short period, you will find most trading opportunities occurring during the busiest hours.
If you are trading a forex cross, i.e. a currency pair that does not involve the US dollar, you might have another window of time when the financial exchanges in both countries are open for business.
For instance if you were trading AUD/JPY you may find that trading was good during what is called the Asian session. The Australian and Japanese business hours are pretty close and on a day when activity was foreseen you may find some lucrative trades during the overlap. However, usually this is a more sluggish trading session for just about all currencies.
Therefore the best time for most currency traders is during that three hour window in the morning in the US and the afternoon in the United Kingdom and Europe, when the exchanges are open on both sides of the Atlantic. Trading can be frantic during those hours, there is maximum liquidity and the currencies move far and fast. Most the important market news is released during this period too, particularly toward the beginning. So these hours are the most suitable forex trading times if you want to grab quick profits.
Whatever the time zone you are trading 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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