What Are The Best Hours For Forex Trading?
Given the fact that the Foreign Exchange is a highly dynamic market with frequent price swings that can happen in one minute, traders can enter the market at any time of the day and yield profit from these trades at any moment. To understand currency trading basics, you must first have an idea of how time and forex are related.
The secret is to know what the best time to trade on the forex market is and how to best use this information to your advantage. By "best forex market hours," we mean the time slot when the activity and volume of transactions are at their highest.
Forex is usually traded 24 hours a day, starting from Sunday 5 pm EST through Friday 4 pm EST. Forex Trading begins in New Zealand, followed by Australia, Asia, the Middle East, Europe, and America. Forex time frames play a major role in your forex money management plan, so take some time to understand this notion well.
- Here are a few time and space-related facts about the global forex market:
- The US & UK account for more than 50% of the forex market transactions.
- The major forex markets are in London, New York and Tokyo
- Nearly two-thirds of NY forex activity occur in the morning hours while European markets are open.
- Forex Trading activity peaks when major markets overlap.
- Here are the trade hours of the world's major forex markets:
- New York Market: 8am-4pm EST
- London Market: 2am-12Noon EST
- Great Britain Market: 3am-11am EST
- Tokyo Market: 8pm-4am EST
- Australia Market: 7pm-3am EST
You can see that forex trading is always being trading at any point in time during the day, 5.5 days a week. This means that somebody somewhere in the world is buying and selling currencies at this very moment!
Timeframe is all about personality!
Newcomers in the forex exchange world often make the mistake of trading with a timeframe that doesn't suit their personality. Most new traders are driven by the lure of getting rich fast and start trading in short timeframes. However,within a very short time, they often find themselves frustrated.
The fact of the matter is that different traders prefer different timeframes and whereas they can succeed in one timeframe, they will probably fail in another. Why? Well, it seems that their personality is involved on some level or another.
Some traders feel comfortable trading the 1-hour charts. They believe it's a good average timeframe, which provides them with enough time to analyze the
market without being rushed into anything.
Others however, feel that a 1-hour timeframe is too slow for them. These traders feel like a fish in the water trading on a 10-minute chart. That way, they feel like time is moving faster, and although they have only 10 minutes, it's enough for them to assess the market and make decisions according to their trading plan.
Don’t be surprised if in a casual trader-to-trader chat, your partner tells you he hates 1-hour charts and that he cannot even imagine trading within a 10-minute timeframe.
This type of trader will most likely prefer trading on daily, weekly or monthly charts. So it is likely that your forex market hours depend on your own personality too. To see in which timeframes you feel the most comfortable, try trading at different market hours.
For your information, timeframes are typically categorized into three types:
Long-term.
Short-term or swing.
Intraday or day-trading.
Continue To: Forex market history.