European Session.
Table of contents
- Forex market opening hours: best time to trade FX in the UK
- Forex Market Hours
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As you might expect, currency pairs are at their most active during the opening hours of their native countries. This means there is a lot of interest from banks, traders, and investors in both countries simultaneously. In fact, one of the most important factors which will affect your trading schedule is your chosen trading style. As we mentioned earlier in the article, some of the best times to trade forex are at 8am GMT when the London session opens and during the overlap between the European and American markets.
This occurs from 12pm to 4pm UTC. The strategy you choose will ultimately depend on the amount of time you can spend monitoring the market. There are 4 main trading styles, ranging from short to long-term. As its name suggests, day trading is a great choice for traders who can devote a lot of time to forex during the working week. Somebody with a full-time day job is unlikely to be able to monitor the market at 8am when the London session opens. However, a dedicated day trader is always available to take advantage of the best times to trade forex in the UK.
On the hour UTC forex clock, the New York session is the final session to close before the Sydney session opens the next day. As a result, it often benefits from last-minute interest from investors, particularly at the end of each working week. This is because many USD crosses have their highest trading volumes during this time. Again, this reflects the benefits that come from the London and New York sessions having a substantial overlap. The London and Tokyo sessions cross over by 1 hour every day. The combination of the liquid yen and volatile Aussie dollar makes this pair a popular choice during the crossover between the Tokyo and Sydney trading sessions.
In the month period from November , the Tokyo session saw lower average daily pip movement than the London or New York sessions. Currency trading in the UK can be exciting and profitable. Indeed, It offers liquidity and flexible trading hours. The higher leverage allows you to make quicker profits than most other markets while being mindful of the risks.
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Now you know more about the best time to trade forex in the UK, you could be ready to take your interest to the next level. Understanding the forex market can take years of study. With tight spreads, they are a leading global brand. Voted top broker in UK. Trade Forex in the UK with top rated broker eToro , which has been selected based on its high rating and your location.
We at Trading Education can help you start trading forex in the UK. Simply sign up for our forex trading course to become a professional forex trader. You should consider whether you can afford to take the high risk of losing your money. Forex Trading Articles. Last Updated March 27th What Is A Currency Pair? Although it reduces the risk of being affected by forex changes overnight, it can be quite an intensive style because it requires you to monitor the market very closely.
Scalping : This is when investors make a large number of trades in a matter of minutes.
Forex market opening hours: best time to trade FX in the UK
Although each individual trade is unlikely to have a high value, it offers a good balance between risk and reward as small profits can quickly add up. Then the NY session brings in even more volatility and liquidity into the mix and that is when the full flow of the market is seen. Again, if you are in South Africa for example, it is important for you to understand the forex market hours as in South Africa so that you can plan your trade accordingly. It is always good to avoid times of low liquidity as the prices tend to be either very less volatile or too volatile and you, as a trader, would not be in a position to comprehend the moves that happen in the market.
None of the analysis that you have made, either fundamental or technical , would be useful at times of low liquidity as the market is rocked this way. It is especially important to understand the forex market hours for the weekend as the beginning of the forex market session on Monday is likely to see very little liquidity, as traders return to their desk, but high volatility as the weekend news tend to affect various currencies. As traders, it is important to stay out at such times and choose the times when the volatility and the liquidity are pretty good. This is either the London session or the best time to trade would be the time when the London session and the NY session overlap so that you get the best liquidity and volatility, these can be trusted to lead in the correct direction.
Forex Market Hours
The worst possible time would be the time between the end of the US session and the open of the Sydney session but of course, there are some traders a very rare and unsuccessful breed who like to use this lack of liquidity to scalp some quick trades. Now that you have understood the different sessions and also understood why it is important to trade during times of high liquidity, lets move on to the next higher level to understand when forex market hours clock opens and closes in a time span of a week.
This is generally quite challenging for the traders as once the market begins for the week, prices keep moving all through the day and traders tend to go with the flow. Traders find it difficult to wait for the open on Sundays and also find it difficult to time their closure of trades for the week on Fridays as they are unable to grasp the exact timings. In the weekend, forex market is generally closed for most part of Saturday and Sunday. But the forex trading hours on the weekend vary from region to region.
The market opens for the week at 9 PM or 10 PM GMT based on summer or winter as specified in the table above but the actual time varies from country to country depending on their timezone. So, for some traders, depending on which part of the world they are in, the market opens on Sunday itself while for certain traders like those in Australia , the market opens only on Monday morning. If you are in India, the forex market hours in India are such that the market opens only on Monday early morning. This is again something that traders need to get used to so that they can time their trades correctly.
Also, in certain weekends, there might have been some important market news and so it becomes important for traders to open or close his trade at market open and at such times, it is important to understand and grasp these timings correctly.
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As we have mentioned earlier, the volatility in the market ebbs and flows according to the forex market hours clock. It may be a good idea to download a clock software with these timings inbuilt so that you can refer them as and when you need it. The volatility, in a week, is a bit high during the first hour or so of trading in a week, especially if there has been some important news over the weekend. Then, it settles down and the volatility, when compared to the other sessions, is generally low during the Sydney session.
Once the Tokyo session begins, this is also the time when the other countries in the same timezone, like Singapore and China, join the trading as well and so this is the time when the volatility is high as far as the Asian timezone is concerned. The volatility then meanders along and there is a spurt again when the London session begins as the major banks and hedge funds and the large investors in Europe join the trading. Ideally, this is the time of the day that the trader should look to begin his trading as the earlier sessions are likely to have a lot of noise and irrelevant trading.
The volatility continues to remain high for the next few hours and then peaks once the NY session begins. This is the time when both the London and NY sessions are open and for around hours, the volatility is the highest as traders in both major parts of the world fight it out in the market. Then the London session closes and the volatility slowly dies down and becomes the lowest as the NY session closes. Again, it varies from region to region making it a difficult thing to grasp but once it becomes ingrained into the mind, then it is much easier to operate with and go with the flow.
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