Optimal Currency Trading Periods - When It Is Really Recommended To Be Active In Currency Markets?




So what are the most suitable foreign exchange trading times? The forex market is open day and night throughout the business week, but this does not inevitably mean that all of those 24 hours are beneficial for trading. There is a lot more activity on the currency exchange markets at specific times of the day and frequently the most beneficial times to buy and sell are when the exchanges are busiest.

The two most important exchanges for currencies are London and the US markets. Even though the UK does not use the euro, most eurozone lands are within 1 hour time deviation from the UK, as is Switzerland. US time zones also include Canada. So the London session and the US session between them include most of the key currencies that are traded.

The London session starts at 8 a.m. UTC and ends at 4 p.m. UTC. The forex crosses that are most active during this session are the Euro, British Pound and US Dollar which is involved in the greater part of all deals.

The US trading begins at 1 p.m. UTC (8.00 EST) and finishes at 10 p.m. UTC (17.00 EST). The most traded currency pairs during these times involve USD, the Euro, British Pound, AUD, the Japanese Yen and the Canadian Dollar.

The busiest exchanging time, as you might anticipate, is during the 3 hours when both of these sessions overlap and the exchanges are active in both the UK and the US. This time overlap runs from 13.00 to 16.00 UTC (8.00 to 11 a.m. EST).

If you like to leave your orders open over several days it would not make that much difference to you being aware of the busiest periods on the markets. But if you are involved in day trading forex where you may open and close a trade within a very short period, you will find most opportunities popping up within the busiest hours.

If you are trading a cross rate, i.e. a currency pair that does not involve the USD, you might have another window of time when the financial markets in both countries are open for trading.

For instance if you were trading AUD/JPY you could find that trading was good during what is called the Asian session. The Australian and Japanese business hours are fairly close and on a day when activity was anticipated you might find some winning trades within the overlap. However, usually this is a not so active session for just about all currencies.

So the ideal time for most foreign exchange traders is during that 3 hour window in the morning in the United States and the afternoon in the United Kingdom and Europe, when the exchanges are open on both sides of the Atlantic. Trading can be frantic during those hours, there is maximum liquidity and the currencies swing far and fast. Most the important economic news is published during this period too, particularly toward the beginning. So these hours are the most beneficial forex trading times if you want to grab quick profits.

Whatever the time zone you are trading in, you need to have a profitable forex trading system. If you don't have a proprietary strategy, use forex signals from an accurate forex signal provider. This way you can make profits in any markets and any time.

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