Saturday, November 19, 2011

Forex Trading Times

Forex trading times vary for different markets due to the fact that you can only be in one part of the world at once.

Yes trading currencies is an activity that can be carried out 24 hrs a day but there are different currency markets and each one closes at some point during the day.

The normal trading times are from 8am to 4pm. Of course there is always at least one currency market opened due to the time differences all around the world. There are also times that may prove more beneficial when trying to gain a financial profit than others. But what are these forex trading times?

Best forex trading times:

The best time to invest in forex trading is when there is a large volume of currencies being traded. So what you need to look out for is the time when particular currency market hours overlap. This is when there are big pip movements and a large volume of trades.

This in turn means a bigger chance of gaining a profit from your investment. When there are fewer trades occurring in the market you stand a greater chance of losing your investment. If you trade when one of the big markets are open you stand a better chance of gaining a profit. London, Tokyo and New York are three of the biggest markets.

Some of the markets that overlap (EST):

1- Sydney and Tokyo 7pm to 2am
2- NY and London 8am to 12am
3- London and Tokyo 3am to 4 am
4- Asia and Australia 7pm to 10pm

Market times:

Tokyo - 7pm to 3am
Frankfurt – 2am to 10am
Australia – 5pm – 1am
Singapore – 9pm – 5am
London – 3am to 11am

The worst time to trade:

Probably the worst time to trade would be between the hours of 4pm to 6pm EST. The reason for this is because the US markets close without any major overlapping occurring. As mentioned previously, this low level of trade, once there is no overlap provides less great financial gains than if there was an overlap.

Basically the fact is that forex trading never really stops. As you become more familiar with the forex trading times you will become a better and more successful forex trader. It is up to you as a trader to remember these times and periods of market overlap if you want to benefit from large trading volumes.

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