Best Times to Trade Forex and Why They Matter
The forex market is as popular as ever, and if you’ve ever tried your hand at forex trading, you probably already know that it’s a 24-hour global market.
The forex market is as popular as ever, and if you’ve ever tried your hand at forex trading, you probably already know that it’s a 24-hour global market. Currencies move day and night, and there’s always something happening somewhere in the world.
But not every hour is created equal. Some periods are buzzing with activity, while others are too slow for anything to happen. Knowing when to trade can make a massive difference in how much you profit, how much risk you take, and how often your trades are successful.
So, let’s find out the best times to trade forex and why timing matters.
Understanding the Forex Cycle
The forex market runs on global time, from the moment it opens in Sydney on Monday morning to when it closes in New York on Friday Evening. During this period, the market passes through four main trading sessions:
- Sydney session, from 10 PM to 7 AM GMT
- Tokyo session, from 12 AM to 9 AM GMT
- London session, from 8 AM to 5 PM GMT
- New York session, from 1 PM to 10 PM GMT
Each session represents a different part of the world waking up and jumping into the market, meaning different currencies dominate at different hours.
The London Session
The London session is often called the heartbeat of forex trading, and for good reason. It’s the most liquid, most volatile, and generally the most profitable period for traders.
London overlaps with both the Tokyo and New York sessions, which creates big waves of trading volumes. It’s when the major currency pairs, such as EUR/USD and GBP/USD, are most active.
The best time to start is around 8 AM to 12 PM GMT, which is ideal for traders who like movement, volatility, and quick profits.
The New York Session
The New York session starts right as London is still in full swing, which makes the overlap between 1 PM and 5 PM GMT one of the busiest times in the forex market.
During this window, you’ll see big moves on USD-related pairs, since the US dollar dominates global trade. Market trends from earlier in the day often continue as well.
After 5 PM GMT, things calm down as London closes. So, the best time to trade is from 1 PM to 5 PM GMT.
The Asian Session
The Tokyo session, also called the Asian session, is generally slower and more stable. It’s when the market resets after the weekend and prepares for the heavy hitters later in the day.
Pairs like USD/JPY move the most during this period. There’s less volatility, but trends tend to be cleaner and more predictable. The time between 12 AM and 7 AM GMT is best for new traders learning the ropes.
Read More: National One Cent Day: Celebrating the Legacy of America’s Smallest Coin
The Sydney Session
The Sydney session opens the forex week, but it’s also the quietest. Liquidity is low, and spreads can be wide, especially in the early hours.
It’s the ideal window for longer-term traders or those analysing weekly trends, specifically between 10 PM and 2 AM GMT.
We’re now on WhatsApp. Click to join.
Like this post?
Register at One World News to never miss out on videos, celeb interviews, and best reads.
