Forex is a venture active 24 hours a day and 5 days a week. So, if one wants to know the best Forex time to trade, the simply answer would be whenever one feels convenient. With a deeper take on Forex world market trading hours, one would understand that there are some hours which are a bit more lucrative to trade at.
Elucidating facts on FX World market hours:
FX is labelled as one of the best exchange markets around. The reason for that is by the time one trade session ends, another one begins. This makes it a continuous profit making prospect for investors.
• NYK trading session (as per GMT) is between 1:00 p.m. to 10 p.m. However, by the time the NYK session closes, the Sydney session starts.
• Similarly Tokyo trading session becomes online from 0:00 a.m. and continues till 9 a.m. To complete this loop, London session starts from 8 a.m. and extends right up to 5 p.m.
This presents traders as well as FX brokers across the planet to continue their operation along with the big market players such as Central Banks, Hedge Funds round the clock.
Market hours with more activity usually hold more profits:
Truth be spoken, not all Forex world markets hours are profitable for trading. There are some sessions which involve very little activity. Like for example- the session when the New York session closes and the Sydney trading period starts are usually quiet periods. There will be modest trading opportunity.
On the contrary, if someone wants to engage in Forex Majors’ trading, i.e. trade with EUR, USD, GBP, JPY, CHF, AUD, NZD and its vivid pairs, then the time to focus on will be when US and UK sessions are active.
The most profitable session of all as per traders is when the NY and London session interchange. The market offers the best liquidity at that time and profitable opportunities galore. That time is between 1 p.m. to 4 p.m. as per (GMT). The main currencies to focus on during these worldwide forex market hours are- EUR, USD, GBP, AUD and JPY.
Times when traders need to NOT throw caution to the wind:
There are numerous variables which governs the functioning of the currency exchange market. It is during those sessions that a trader, especially a new one needs to secure some caution and not fly off the handle.
Those times include
• When there is a government report release.
• At times when there is crucial economic news circling the FX arcade.
• When a specific country has experienced a natural calamity.
One way to be aware of all these instances is referring to financial news regularly. Plus eye-balling an economic calendar is also fruitful for those wanting to know- to trade or not to trade.
Get a proper understanding through online FX PDFs and study manuals:
These are details which a trader will learn with more time spent in this lucrative venture. To start off on a sound note, they should download available FX learning PDFs and study manuals and also ready some articles and blogs on the best Forex world market trading hours. That will make them more prepared to know when and when not to enter into a trade operation.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.