When to Trade Forex

What is the most profitable trading time in forex market? Here is an very infomative article about Best Day and Time for Forex Trading. Unlike stock trading, the currency trading market is open round the clock during the 5 business days. However this doesn’t mean that the currency trading market is getting the same number of trades or price variations throughout these days. There is a lot more business on the forex trading markets at certain times of a day and normally, the best times to trade are when the markets are busiest.
The two largest trading floors for Fx trading are London and the New York markets. Even though the UK does not use the euro, a good number countries in EU are within 1 hour time difference from the United Kingdom, as is the Swiss market. US time zones also comprise Canadian. So the London session and the US session between them cover the largest part of the key currencies that are exchanged.
The London currency exchange session begins at 8.00 UTC and closes at 16.00 UTC. The currencies that are primarily active during this trading session are the euro (EUR), British pound (GBP) and US dollar (USD) which is involved in the majority of forex trades.
The USA Fx market starts at 13.00 UTC (8.00 EST) and closes at 22.00 UTC (17.00 EST). The most traded currencies during this currency exchange session are USD, EUR, GBP, AUD (Australian dollar), JPY (Japanese yen) and CAD (Canadian dollar).

The nost active trading hours, as you guessed, is during the 3 hours when these two times overlap and the trades are open in both London and US. This time frame runs from 13.00 to 16.00 UTC (8.00 to 11.00 EST).

If you are a person who like to let the orders run over several days or would like to use a program like Forex Derivative it might not make much of a difference to know the peak hours on the currency trading markets. But if you are interested in day forex trading where you will open and close a trade within a few minutes, you will find majority of the opportunities coming up during the most active hours. And it not uncommon that trading manually during this period of time can beat the Forex Autopilot Software which is the widely used Fx trading robot.

If you are dealing with cross rate, i.e. a currencies that do not involve the USD, you may have another window of time when the currency exchange centers in your two nations are live for trading.
For instance if you were currency exchange in AUD/JPY you may see that trading was busiest during the Asian session. The Aussie and Japanese trading hours are pretty close and on a day when trading was anticipated you might find some money making trades during the overlap. But, usually this is a slow moving foreign exchange center for just about all currencies.
So the best session for most traders traders is during that three hour window in the morning in the US and the afternoon in England and Europe, when the foreign exchange markets are open on both sides of the Atlantic. Business can be frantic during those hours, there is high liquidity and the currencies move far and fast. A number of important economic news is released during this timw too, particularly toward the beginning. So these hours are the best currency exchange times if you want to build quick gains.

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