While it is generally recommended to trade forex during the main trading hours, there are other times that are ideal as well. Most of the news is released during the New York and London sessions, which means that these are the times that offer the best price movements. The biggest number of transactions and the highest volatility in the forex market occur during the London session. As long as you can trade during the overlap between the two sessions, you will be able to profit from the higher volatility and lower spreads.
The best times to trade forex depend on the currency pair that you are trading. For example, GBP/USD has higher volumes during the New York and London overlap, which is at approximately 8 a.m. and 12 p.m., respectively. This overlap between the two markets, however, is not as high-volume as the London/New York window, which is usually about four hours long. As with other trading activities, it is important to maintain a risk-management strategy throughout these periods.
If you want to trade currency pairs that involve the United States, Asia, and Europe, the morning hours are best. However, some currencies close early. The New York and London sessions overlap at around 8:30 AM EST. The best time to trade forex is during these hours, as the trading volumes are higher and the daily pips range is higher during these times. If you want to make money, you should aim to lock in most trading during the middle of the week.
Although the Asian markets overlap the European markets, the European market tends to have the most activity during these hours. GBPUSD and EURUSD are active during the overlap period, while the UK and US markets close at different times. There is also plenty of room for trading during this time, and professional traders often consider 14:00 GMT the best entry time. During these hours, price movements are unpredictable and choppy, which means there are more opportunities for profit.
September to December are among the best times to trade. This period represents the beginning of the trading year after the summer holiday lull, while the weeks around Christmas and January represent a rejuvenating return to trading. And as mentioned before, this is not the only time when the markets are high. With the right strategies, you will be able to profit from the high volatility of the market. There are also a number of important news drivers on Tuesday that drive price movement.
In order to benefit from the trading opportunities that are available on the currency market, you must know when to trade. While the currency market is open twenty four hours a day, it is closed during weekends. For this reason, you should aim to trade during those hours when activity is high. This means avoiding trading during the light hours and focusing on activity during three largest Market Centers. In addition, successful day traders know that they should avoid trading during times of low activity and instead focus on trading during the three largest Market Centers: Monday, Friday, and Tuesday.