What are the Best Times for Forex Trading?
So, you have taken the leap and decided to invest your money with a forex broker. Now you have to determine the day trading times you expect to operate in.
Since the markets operate 24 hours a day during the week, there are opportunities for trading forex at any time. However, the aim is to maximise the opportunities for profit making in your online trading. Therefore, you have to pay specific attention to the best forex trading hours. These are the times when the volume of transactions is highest.
The forex market is such that as one country’s market closes another one opens. The business hours of many countries also overlap. However, over 50% of the transactions in the forex markets worldwide occur within the US and UK markets. If you look at the trading patterns of New York traders, you will see that the majority of their forex currency trading occurs early morning when the European markets are still open. Most of the online forex transactions occur when the major markets, London, New York and Tokyo, overlap.
So, if this is the best time to trade, when do the overlaps occur? Obviously, you must take into account the different time zones throughout the world and the subsequent opening and closing times of the European, American, Japanese, New Zealand and Australian markets. Consequently the overlaps occur between 2am and 4am EST and 8am and 12pm EST. Investors should be prepared to trade during these times to increase their chances of profitable exchanges.