Most Suitable Forex Trading Times - When It Is Really Recommended To Be Active In Foreign Exchanges?
by Chris on February 15, 2010
So what are the ideal currency trading times? The currency market is open day and night during the business week, but this does not necessarily mean that all of those 24 hours are beneficial for trading. There is considerably more activity on the currency exchange markets at specific periods of the day and in most cases the ideal times to trade are when the exchanges are busiest.
The 2 biggest exchanges for currency trading are London and the US markets. While the UK does not use the euro, most eurozone countries are within one hour time deviation from the UK, as is Switzerland. US time zones also include Canada. Thus the London session and the US session between them include most of the important currencies that are traded.
The London trading session starts at 8 a.m. UTC and finishes at 16.00 UTC. The forex crosses that are most active during this session are the EUR, GBP and USD which is involved in the greater part of all transactions.
The North American trading starts at 13.00 UTC (8.00 EST) and finishes at 10 p.m. UTC (17.00 EST). The most traded forex crosses during these times involve USD, the Euro, British Pound, Australian Dollar, the Japanese Yen and CAD.
The peak exchanging time, as you might presume, is during the 3 hours when both of these trading times overlap and the exchanges are open in both London and New York. This time overlap runs from 13.00 to 4 p.m. UTC (8.00 to 11 a.m. EST).
If you like to leave your orders open for several days it would not make so much difference to you knowing the busiest periods on the markets. But if you are engaged in day trading forex where you may open and close a trade within a very short period, you will find most possibilities popping up during the most active hours.
If you are trading a cross rate, i.e. a forex pair that does not involve the USD, you might have another time window when the financial markets in both countries are open for business.
For example if you were trading AUD/JPY you could find that trading was satisfactory during what is called the Asian session. The Australian and Japanese business hours are rather close and on a day when activity was foreseen you could find some winning trades during the overlap. However, generally this is a not so active session for virtually all currencies.
So the most beneficial time for most currency traders is within that 3 hour window in the morning in the US and the afternoon in the UK and Europe, when the exchanges are open on both sides of the Atlantic. Trading can be chaotic during those hours, there is maximum liquidity and the currencies swing far and fast. Most the significant economic news is released during this period too, especially toward the beginning. So these hours are the most beneficial forex trading times if you want to make quick profits.
Whatever the time zone you are trading in, you need to have 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 earn profits in any markets and any time.
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