Best Time To Trade Forex

Best Time To Trade Forex explained by FX trading experts, In this article you will know all about the Best Time To Trade Forex Currencies.

So you are looking for the best Forex trading hours, On the Forex (Foreign Exchange) the best time to trade Forex is at what time the market is most active. While more dealers are active, trading spreads, the difference between the ask price and the bid price — tend to contracted. The outcome is that less of your money goes to the market maker — the expert who trades the currency in question and more to the seller and buyer.

The 4 Main Forex Exchanges

For traders Active trading marketplaces are nearly always well, whether you are trading on the NYSE, Forex or any other financial trading marketplace.

However, for Forex dealers, there’s another good cause for trading while the market is most active: volatility. Because of the nature of the Foreign Exchange’s four main exchanges – London, New York, Tokyo and Singapore — while more than one exchange is open, not only does trading volume rise, but volatility considerably increases as well. Though, depositors often fear unstable markets, volatility the range and rate at which a currency or equity price changes is good for dealers. Devoid of volatility, values remain constant and trading cannot be lucrative. Thru volatility arises risk, but also opportunity.

International Forex Markets Hours

The Forex has 15 independent exchanges internationally. All are open weekly 5 days, from Monday to Friday. All exchange has exclusive trading hours, but from a trading viewpoint, the four most significant exchanges and their hours are the subsequent:

New York: 8 AM to 5 PM
London: 3 AM to 12 PM (noon)
Tokyo: 7 PM to 4 AM
Singapore: 3 PM to 12 AM (midnight)

Forex Trading Hour Overlaps

Forex Market Hours

Whereas each exchange is self-regulating of the other, they are all trading the similar currencies. This means that while two of these four big exchanges are open, the number of dealers actively selling and buying currencies increases considerably.

Asks and Bids on one Forex exchange are instantly reflected in the asks and bids on any other open exchange, which both decreases market spreads and rises volatility.

While you study the Forex Trading Sessions listed above, it comes to be clear that Forex trading hours on main exchanges happen in 2 markets instantaneously from:

3 PM to 5 PM, when both Singapore and New York exchanges are open
8 AM to 12 PM (noon) EST, when both London and New York exchanges are open
3 AM to 4 AM EST, when both London and Tokyo exchanges are open
7 PM to 12 AM (midnight) EST, when both Sydney and Tokyo exchanges are open

What Is The Best Forex Trading Hours?

These 4 overlaps are generally the 3 best times to trade. Of these, the utmost positive trading time is the Forex Market Hours GMT time that stars from 8 AM to noon overlap while both London and New York exchanges are open. These 2 trading centers account for in excess of 50 % of all trades on all 15 exchanges internationally.

Exceptional situations can arise, though, that can create any hour of the day or night a positive trading time. Usually, e.g., from 5 PM to 6 PM EST is not a favourable time to trade; the only main open exchange is the Singapore exchange, which accounts for below 10 % of annual Forex trading volume.

If, though, there was a military or political crisis anywhere in the globe that established during this hour, trading volume and volatility would probably spike in response, creating this a very positive time to trade.