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Most Suitable Forex Trading Periods - When It Is Actually Recommended To Be Active In Currency Markets?


So what are the best forex trading times? The foreign exchange market is open 24 hours a day throughout the business week, but this does not necessarily mean that all of those 24 hours are beneficial for buying and selling. There is significantly more action on the foreign exchange markets at certain periods of the day and usually the appropriate times to trade are when the exchanges are most active.

The 2 primary trading floors for forex are London and the US markets. Despite the fact that the UK does not use the euro, most euro lands are within one hour time deviation from the UK, as is Switzerland. US time zones also come with Canada. Thus the London session and the US session in between of them cover most of the major currencies that are traded.

The London trading starts at 8.00 UTC and ends at 16.00 UTC. The forex crosses that are most busily traded during this session are the EUR, GBP and USD which is takes part in the majority of all trades.

The North American session gets started at 13.00 UTC (8.00 EST) and finishes at 10 p.m. UTC (17.00 EST). The most actively traded forex pairs during these times involve the US Dollar, EUR, GBP, Australian Dollar, JPY and the Canadian Dollar.

The peak exchanging time, as you could suppose, is throughout the three hours when these two trading times overlap and the markets are active in both London and New York. This time overlap runs from 1 p.m. to 4 p.m. UTC (8 a.m. to 11.00 EST).

If you like to let your orders run for several days it may not make that much difference to you knowing the busiest periods on the exchanges. But if you are engaged in currency day trading where you might open and close a trade within a few minutes, you will find most trading opportunities coming up within the most active hours.

If you are trading a forex cross, i.e. a forex pair that does not include the US dollar, you may have another time window when the financial centers in both countries are open for trading.

For example if you were trading AUD/JPY you could find that market activity was sufficiently active during what is called the Asian session. The Australian and Japanese trading hours are pretty close and on a day when activity was expected you may find some profitable trades within the overlap. However, generally this is a not so active trading session for virtually all currencies.

Thus the best time for most forex traders is within that three hour window in the morning in the United States and the afternoon in the UK and Europe, when the exchanges are most active on both sides of the Atlantic. Trading can be chaotic during those hours, there is maximum volatility and the currencies move far and fast. A lot of the significant financial news is broadcasted during this period too, especially toward the beginning. So these hours are the most beneficial currency trading times if you want to seize quick profits.

Whatever the time zone you are being active as a trader in, you will need a profitable forex trading system. If you don't have an own strategy, use forex signals from an accurate forex signal provider. This way you can earn money in any markets and any time.

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