Timing Your Currency Trades to Match the Market

Super Profit Scalper

Because the currency markets are open for trading 24 hours a day one could trade at anytime. That doesn’t mean that every time is the best for trading though. Undoubtedly the best time to trade currencies is when the most traders are actively buying and selling. The larger volume of trades makes the market more dynamic and gives a better opportunity for prices to rise or fall rapidly, thus giving fast profits. When the markets are slow you might as well forget about trading for the day, close out of your Ironfx account, and go do something else.

Because London is the center of the forex world it is during the London market hours that trading increases the most. New York is also very active and because there is just a 5 hour time difference between the two there is some overlap during the day when both markets are active and this is the ideal time to trade in forex, if you are focusing on USD or and of the European currencies.

Trading in the forex market actually begins with the open of the Tokyo market at 8:00pm until 4:00am EST. London trading kicks off at 3:00am EST and are done trading at 11:00am EST. And finally, the New York traders are active between the hours of 8:00am and 4:00pm EST.

By far the most volume occurs with the USD, EUR and GBP and so it make sense to trade when the markets for these currencies overlap. This is between the hours of 8:00am and 11:00am EST when both the London and New York markets are still open and active.

If you are looking to get the best advantage in your forex trading you would do well to focus on these 3 hours of the day for your trading in EUR/USD and USD/GBP. Because you’ll find the greatest volume of trading during this time you will also find the greatest price movements and the greatest chance to profit from these movements. When looking for a time based advantage keep in mind too that Mondays and Fridays are often poor choices for days of the week.

The reasons behind this are quite logical. Monday is the start of the trading week and frequently the market is trying to decide whether to continue the previous weeks trend based on weekend news and events. This can lead to either slow or congested trading. Fridays are typically a poor choice due to the large volume of trades being closed in anticipation of the weekend.

With all of this in mind its easy to see that the best times to trade currencies are between 8:00am and 11:00am EST on Tuesday, Wednesday and Thursday. If you can master your trading you could make a living working just these 9 hours a week at forex trading. That should be an encouragement to any prospective forex trader!

Forex 101: Understanding the Hours Of Operation

Pips Wizard Pro

Forex 101

This article is about Forex trading. Specifically, forex trading hours. Many people have heard about the 24 hour nature of the markets, but it’s not what you probably think. It’s not some huge NASDAQ type platform where all the currencies are traded 24-hours a day.

Exchange Money Conversion to Foreign Currency
Exchange Money Conversion to Foreign Currency (Photo credit: epSos.de)

If you plan on making money in the Forex market, you need to understand the structure of the market. It’s a good idea to get a good grasp on the basics such as when markets open and close, and the best time trade the markets.

The first thing you need to know is the nature of the markets. Like I said before, there isn’t one big Forex market. There are actually many different markets that all open and close at various times around the globe.

The second thing that you want to know is which are the major markets you want to pay attention to and trade in. This will increase your money making opportunities and it will allow you to focus on fewer strategies to make money in the markets.

The third thing is understanding the best time to trade the major markets. Here’s a quick checklist of the best market matches and times below:

New York / London – 8:00 am – 12:00 noon EST

Sydney / Tokyo – 7:00 pm – 2:00 am EST

London / Tokyo – 3:00 am to 4:00 am EST

These basic match-ups generally have the highest level of activities during those specific hours. And the key to making money is to have plenty of trading opportunities that take advantage of various undervalued currencies.

These are the foundational things you should understand about the nature of the Forex markets before you open a test account. Once you have a better grasp on the basic operating procedures of the markets, it’s a good idea to start developing your forex trading strategy to make money consistently.