The reason the forex market runs 24 hours is that trading happens globally. There are different timezones in the world which mean different markets get busy at different times. The major trading sessions across the world are in Sydney, Tokyo, London, and New York.
Daily, they account for almost 75% of forex trading volume. The first session to open is usually Sydney which opens at 10 pm UTC on Sundays. New York is the last to close at 10 pm UTC on Friday. Many other factors determine the best time to trade forex.
What to consider before choosing the best time frame to trade Forex
Before you decide on your forex best time to trade, there are several considerations to make. Most traders will first consider the major forex session times around the world. Forex trading internationally is based in the Sydney, Tokyo, London, and New York time zones. The Sydney session is not popular compared to the other three. The reason is that the three countries are major financial hubs globally.
The forex market is open 24 hours but you might not be able to stay awake for 24 hours. Before you decide what is the best time frame to trade forex, consider your plans for each day. Planning is essential to achieve consistency, which can potentially lead to higher profits. Additionally, if you lack the capital, effective planning may increase your chances of getting funded as a trader. You can make your trading easier by choosing to use a forex robot for automated trading. When you visit Forexstore, you will find a wide range of forex robots to choose from. You only need to program it based on your best time to trade forex. You can also program it to trade non-stop for 24 hours.
In addition to these tools, it’s beneficial to stay informed about various investment opportunities. While forex trading offers its advantages, diversifying your portfolio can be a wise strategy. Exploring different markets, such as shares, might provide additional insights and opportunities. For more information on this, you can check this out. It’s always useful to have a broad understanding of various financial instruments and markets, allowing you to make more informed decisions.
Main currency markets features
One of the main features of the currency market is liquidity which means you can quickly buy and quickly sell. However, the currencies that trade in exchanges have different liquidity values. The EUR-USD is considered the most liquid currency pair. It takes about 28% of trading volume daily.
You might choose to trade when the London/New York sessions are on to maximize benefits from this pair. The other highly liquid pairs are USD-JPY and GBP-USD. Another feature to consider is the dynamism of the forex market, which affects price changes. It runs 24 hours which means you can trade anytime.
Working hours currency markets
The forex market does not take a break starting 10 pm UTC on Sunday up to 10 pm UTC on Friday. It runs for 24 hours because the world works in different time zones. If one region opens, another region in a different time zone closes. The first market to open daily is the Australian region, and the last to open is the North American region. The American market opens at 8 am EST and closes at 5 pm EST.
The Australian market opens at 9 pm UTC and closes at 6 am UTC. Based on this information, it is easier for you to decide when is the best time of day to trade forex. You can trade based on the Sydney, Tokyo, London, or New York exchanges working hours.
Impact of news
The forex markets get affected by happenings around the world. Things such as inflation rate, GDP, pandemics, wars, and natural catastrophes affect trading. You can choose your best time to trade forex based on the latest events or news around the world. If you consider this strategy, you need to have access to the latest news globally. Read, listen, or watch economic news releases.
Know the changes in monetary policies. If a major central bank becomes aggressive in its economic policies, forex pairs tend to rise in value. If another strong central bank relaxes its policies, pairs tend to lose value. Your forex best time to trade can be affected by various types of news.
Summary
Deciding when is the best time of day to trade forex is based on many factors. You can decide based on your personal schedules or trading sessions across the globe. Different news and events in the world affect trading. Consider the various features of the currency market but also focus on the short-term and long-term goals you want to achieve. I
