Forex Trading Times – When Is The Best Time To Trade Forex?
A question many unseasoned forex traders ask about is about forex trading times: When Is The Best Time To Trade Forex? Unlike other markets the forex market trades 24/7 (Actually 24/5). The forex market opens for trade Sunday night (5 PM EST) and closes for businessagain on Friday afternoon (4 PM EST). When the Asian market is closing, the European market opens, then the US market until the Asian market opens again.
So this means to you that you as a forex trader has total freedom on when to trade.
Not all trading times are equally profitable for forex trading.
So the question you are going to ask is probably: When to trade?
We are going to try to answer that question.
Asian Session (Tokyo) (7PM : 4AM EST):
The Asian forex trading session begins at 7 PM EST (12 AM GMT) and closes at 4 AM EST (9 PM GMT). In this forex trading times the most commonly traded currencies are GBP/JPY, GBP/CHF and USD/JPY. These currency crosses can fluctuate 110 pips.
U.S. Session (New York) (8 AM : 5 PM EST):
The US session kicks of at 8 AM EST and closes at 5PM EST. The US is a moderate to highly volatile session, because of its interaction on other markets such as the Stock or Bond market. The most traded currency pairs during these forex trading times arethis session: GBP/USD, GBP/JPY and USD/JPY which fluctuate around 95 pips. There is also trading in USD/EUR and USD/CAD.
European Session (London) (2 AM : 12 PM EST)
London is the the most important and influential trading center at a market share higher than 30%. The bulk of all Forex trades in the market are executed out in these forex trading times because of the liquidity and efficiency of the market.
All major currency pairs are traded during this session. For risk loving traders the GBP/JPY and GBP/CHF have very high fluctuations of up to and even surpassing 140 pips.