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Do You Know "Best Time To Trade in Forex"? - Here's An Ultimate Breakdown!

by Kazi Tanzib Forex Trading Analyst
Many novice traders are trading with their strategies and plans. But they do not know how to utilize the best time for your trading. Some don't even know that there has some specific time for profitable trading. However, in this article, we are talking about what is the best time to trade in forex?

The Forex Markets Hours of Operation

First, here is a brief overview of the four markets (hours in Eastern Standard Time, or EST):

  • New York

New York (open 8 a.m. to 5 p.m.) is the second-largest forex platform in the world, watched heavily by foreign investors because the U.S. dollar is involved in 90% of all trades, according to "Day Trading the Currency Markets" (2006) by Kathy Lien. Movement in the New York Stock Exchange (NYSE) can have an immediate and powerful effect on the dollar. When companies merge, and acquisitions are finalized, the dollar can gain or lose value instantly.

Also Read: Making a trading journal in 2021 - [An Ultimate Breakdown]


  • Tokyo

Tokyo, Japan (open 7 p.m. to 4 a.m.) is the first Asian trading center to open, takes in the largest bulk of Asian trading, just ahead of Hong Kong and Singapore. The currency pairs that typically have a fair amount of action are USD/JPY (or U.S. dollar vs. Japanese Yen), GBP/CHF (British pound vs. Swiss franc), and GBP/JPY (British pound vs. Japanese yen). The USD/JPY is an especially good pair to watch when the Tokyo market is the only one open, because of the heavy influence the Bank of Japan (Japan's central bank) has over the market.

  • Sydney

Sydney, Australia (open 5 p.m. to 2 a.m.) is where the trading day officially begins. While it is the smallest of the mega-markets, it sees a lot of initial action when the markets reopen on Sunday afternoon because individual traders and financial institutions are trying to regroup after the long pause since Friday afternoon.

  • London

London, Great Britain (open 3 a.m. to noon): The United Kingdom (U.K.) dominates the currency markets worldwide, and London is its main component. London, the central trading capital of the world, accounts for roughly 43% of global trading, according to a report by BIS. The city also has a big impact on currency fluctuations because Britain's central bank, the Bank of England, which sets interest rates and controls the monetary policy of the GBP, has its headquarters in London.

Forex trends often originate in London as well, which is a great thing for technical traders to keep in mind. Technical trading involves analysis to identify opportunities using statistical trends, momentum, and price movement.

The Best Hours for Forex Trading

Currency trading is unique because of its hours of operation. The week begins at 5 p.m. EST on Sunday and runs until 5 p.m. on Friday.

Not all hours of the day are equally good for trading. The best time to trade is when the market is most active. When more than one of the four markets are open simultaneously, there will be a heightened trading atmosphere, which means there will be more significant fluctuation in currency pairs. Just look into this picture--

When only one market is open, currency pairs tend to get locked in a tight pip spread of roughly 30 pips of movement. Two markets opening at once can easily see movement north of 70 pips, particularly when big news is released.

The Bottom Line

It is important to take advantage of the forex market overlaps. When you have the right time, you probably have the best advantage. Also, having the perfect broker is also needed. So, read FP Markets Review to know more about forex brokers' facilities and bonuses.

Best of luck!

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About Kazi Tanzib Advanced   Forex Trading Analyst

39 connections, 3 recommendations, 173 honor points.
Joined APSense since, January 18th, 2021, From khulna, Bangladesh.

Created on Mar 19th 2021 01:06. Viewed 105 times.

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