The foreign exchange market virtually does not sleep; that is, currencies are traded 24 hours a day, starting from 23:00 (EST) Sunday and closing at 24:00 EST Friday. However, in spite of this beneficial attribute, not all the time is good for trading currencies. In order to reap maximum profits from Forex trading, it is important to understand the best hours to trade. In most cases, the best time to trade currencies is when large volumes are being traded in the market. At such hours, you can maximize your profits because there is highly volatility and the fluctuation of prices takes place fast.
Because the foreign exchange market is alive for 24 hours a day, the most appropriate time to execute trades is when trading is taking place in most countries at the same time. In every time zone all over the globe, the foreign exchange market opens at 8:00 am and closes at 4:00 pm. Therefore, to benefit from high activity in the markets, Cours EUR USD it is of essence to know when Forex market hours in various countries overlap.
The more the number of Forex markets operating at the same time, the heavier the trading volume. And, these are the times in which the biggest pip movements take place. When there is high activity in the Forex market, making profits is much easier than when activity is low. Usually, slow market does not provide enough opportunities for entering trades and thus you should stay away during such times.
Forex trading hours are as given below (Times displayed are based on the EST):
- New York opens at 8:00 am to 5:00 pm
- Tokyo opens at 7:00 pm to 4:00 am
- Sydney opens at 5:00 pm to 2:00 am
- London opens at 3:00 am to 12:00 noon
From the hours, these are the times when sessions overlap:
- New York and London: between 8:00 am – 12:00 noon
- Sydney and Tokyo: between 7:00 pm – 2:00 am
- London and Tokyo: between 3:00 am – 4:00am
As such, this means that these are the best hours to enter the market because of better opportunities of harvesting huge profits. As an example, trading EUR/USD or GBP/USD can give good profits between 8:00 am and 12:00 when the European session overlaps with the American session. Lastly, it is important to note that it does not mean you should avoid trading beyond these time slots. During these specific time frames, you might get more profits because of the higher volatility than other times.