When is Best Trading Times in Forex ?
In forex trading currencies trade occur five days in a week and twenty four hours in a day and this is one of the most and best offer provided by the foreign exchange market to the traders.
Trading twenty four hours in forex trading means you can start trading from Sunday afternoon and continue till Friday afternoon in EST. This trading opportunity makes traders to trade with the fullest by making tendency to work all day long in the market thereby making their position in the market.
Time zones and opening of the market in different sector of trade in the world is another reason that makes traders to become a perfect workaholic in market. A good example is the opening of forex market in Australia, Asia, New Zealand and Europe and North America with the Far East begins with day.
In forex trading there are also times where trade is in its worst condition. During this poor time of trading there are some strategies that will help trade to reduce the risk. In Forex Trading times are generally expressed in EST (Eastern Standard Time).
Forex Exchange Markets and Importance of Time
There are differences in the openings of market in Forex trading such as at 5:00 PM Sydney and Australia opens its foreign exchange market but before one hour of opening most of the New Zealand traders start making their price at 4:00 PM. The closing time of Sydney is 1:00 AM whereas Wellington closes the market at midnight.
In Tokyo the foreign exchange market opens at 7:00 PM two hours later after the opening of market in Sydney and the closing time is 2:00 AM. Hong Kong and Singapore opens its market at 9:00 PM after the opening of Tokyo and at 5:00 AM the market is close.
In European countries such as in Frankfurt the market opens at 2:00 AM while in London it opens at 3:00 AM. And similarly the closing time also differ by one hour that is 10:00 AM for Frankfurt and 11:00 AM for London.
In the eastern Cost North America, New York opens its market at 8:00 AM and at 5:00 PM the market is closed. Trading in Chicago occurs after one hour and followed by California after three hours.
Foreign Exchange Market and Trade Timings
The opening and closing of the foreign exchange market in the world differs from one another with regard to time factor. There also markets those are open and close equally at same time. Overlapping with the time is one of the greatest liquidity degrees in most of the currency pairs and in the movements.
The higher the liquidity and volume the more is the chance to make profit by the traders. But this type of making profit is only beneficial who use short-term strategies in trading commonly known as scalping.
This type of liquidity is very important in the opening of the foreign exchange market such as in European and New York markets in London and Frankfurt at a period of 8:00 AM to 11:00 AM.
And trading with GBP/USD, EUR/GBP, GBP/CHF, EUR/USD, EUR/CHF and USD/CHF will be more active as these currencies are common in European and United states.
Trading between at 12:00 midnight to 3:00 AM is also a good time in several markets to take benefits. In Sydney market opens till 1:00 PM whereas Singapore, Tokyo and Hong Kong still continue trading. London and Frankfurt exchange market opens between 2:00 AM and 3:00 AM. Currency pairs such as USD/JPY, NZD/USD, AUD/ NZD, EUR/JPY, AUD/JPY, EUR/AUD and AUD/USD is active normally.
Best Trading Times in Foreign Exchange Market
The foreign exchange market in New York close between 5:00 PM and 7:00 PM whereas Chicago open till 6:00 PM and followed by West Coast offices by one hour more that is 7:00 PM. And in New Zealand it is open at 4:00 PM and 5:00 PM in Australia and therefore you can trade in these markets.
This trading strategy opens the door for a trading day where the market becomes small and there is a spread in price. Therefore in forex trading you need to avoid any inconvenience in the liquidation of time and high volatility to reduce risk and save money. Trading positions and amount of bid should also be kept aware.
Trading in a particular day such as in Sundays night as well in Fridays may not be profitable and advantageous like trading in other days because most of the traders counter-trend their trading positions in the weekends.
In addition to the above trading time inconvenience another important fact is the Non-Farm payrolls in U.S. difference in the actual number from the expectation of the market’s consensus a discount to some fast and new information may be possible with the shift in exchange rate.