Forex Trading Hours UK: Best UK hours to trade Forex GMT IG International

best time of day to trade forex
best time of day to trade forex

You may have noticed when reading the previous section that at several times of the day more than one market is open at the same time. These overlapping times usually provide the greatest degree of liquidity in certain currency pairs, as well as wider pip range movements. This tends to make these more liquid periods better times to trade, theoretically at least.

A big news release has the power to enhance a normally slow trading period. When a major announcement is made regarding economic data—especially when it goes against the predicted forecast—currency can lose or gain value within a matter of seconds. Forex trends often originate in London as well, which is a great thing for technical traders to keep in mind. Technical trading involves analysis to identify opportunities using statistical trends, momentum, and price movement. Forex traders often commit their hours to memory, paying particular attention to the hours when two exchanges overlap. We don’t want you to think we’re just blowing our own trumpet, and in fact we’ve picked up numerous awards for our Forex services over the last few years.

A trend can develop lasting from 9 am to 10 am, which day traders can follow. In Forex, low liquidity pairs are generally regarded as the most risky. For example, AUD/GBP, AUD/USD, and AUD/JPY are three examples of highly volatile Forex pairs. Major currencies with high liquidity tend to be less volatile. This is why it’s important to combine technical analysis and fundamental analysis as you define your Forex trading strategy.

best time of day to trade forex

The best time to trade is during overlaps in trading times between open markets. Tokyo, Japan (open 7 p.m. to 4 a.m.) is the first Asian trading center to open, takes in the largest bulk of Asian trading, just ahead of Hong Kong and Singapore. The currency pairs that typically have a fair amount of action are USD/JPY (or U.S. dollar vs. Japanese yen), GBP/USD (British pound vs. U.S. Dollar), and GBP/JPY (British pound vs. Japanese yen). The USD/JPY is an especially good pair to watch when the Tokyo market is the only one open, because of the heavy influence the Bank of Japan (Japan’s central bank) has over the market. If traders can gain an understanding of the market hours and set appropriate goals, they will have a much stronger chance of realizing profits within a workable schedule.

forex market hours

The New York session usually sees high liquidity at its opening due to the overlap with the London session, although movement typically slows down towards the end of the session. A teacher with 8 years of experience and the author’s methodology. The system allows you to trade by yourself or copy successful traders from all across the globe. For your convenience, the picture below represents the working hours of the sessions in UTC format. Day traders usually apply the following periods that each of these categories tends to cover.

What time is forex most volatile?

Typically, the US forex market is most active just after the open of the New York session at 8am (EST). At this time, liquidity and volatility will likely be high as traders begin opening and closing their positions according to the market news for that morning.

Forex market hours run 24-hours a day during the week, but the market is closed on weekends. This continuous trading is only possible because forexis traded all over the world in decentralised venues. Major Forex currency pairs have shown their lowest price movement between 8pm and Midnight London time. We spoke about news releases potentially having a powerful effect on a trading session briefly earlier. When an important statement is released relating to economic data – especially if it contradicts the predictions – currency can rise or fall in value in the blink of an eye.

To test it out for yourself, download the strategy for free with the link below. When trading AUD/NZD, it is important to monitor global commodity prices as well as economic data and geopolitical relations between Australia, New Zealand and China. Whether you are a day trader or longer-term position trader, it will be useful to you to know whether there has historically been any extra advantage in entering trades at a special time of the day. This will be most useful to day traders, who need to trade intensively and must therefore make very effective use of their time. However, there are other factors to consider depending upon whether you are hoping to profit from trend trading or range trading, considered in more detail at the end of this section.

What times can I trade forex with Axi?

The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. 75% of retail client accounts lose money when trading CFDs, with this investment provider. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. Night trading may also create opportunities for traders to profit from retracement of large gains or losses in currency pairs during the US and European sessions, as they can often pull back during night trading. For example, if the EUR/USD pair ended the US session close to thetechnical resistance, it could move lower in the Asian markets overnight. However, trades should always conduct their own due diligence to identify such signals.

This makes for a more volatile market, causing currency pairs to fluctuate significantly. Volatile markets mean increased risk— and in this case, utilizing a top forex broker will make all the difference to your success. One of the biggest plusses that the foreign exchange market offers traders consists of the fact that currencies trade twenty four hours a day, five days a week. This session also coincides with Sydney trading hours, which begin two hours before Tokyo trading hours.

best time of day to trade forex

The optimal times to trade are when the foreign exchange market is most active. Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Spot Gold and Silver contracts are not subject to regulation under the U.S. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries.


The strategies that a trader uses will identify which time frame they should apply to. Longer time frames are better for spotting an overall trade setup, while shorter ones are better for pinpointing the optimal entry point. AxiTrader Limited is amember of The Financial Commission, an international organization tradeatf review is tradeatf a scam or legit broker 2020 engaged in theresolution of disputes within the financial services industry in the Forex market. Reproduction or redistribution of this information is not permitted. As there are multiple trading strategies and trading styles, identifying when markets open is a crucial step in organising your trading plan.

Australia begins trading, with Sydney opening from 10pm to 7am the following day, followed by Japan from 11pm to 8am, and then joined by Hong Kong and Singapore. Then comes Europe, with London as the biggest player, opening at 7am and closing at 4pm. Finally, the US begins to enter the fray, with New York opening from 12pm to 9pm.

What is the best time to trade EUR USD?

We've already noted that the hours between 7:00 and 19:00 GMT are good for trading EUR/USD. There is enough volume and volatility during this time frame to keep spreads low and to allow enough movement to make good profits. You can hone in even better though to improve your trading efficiency.

We might range trade these currency pairs during the 2 PM to 6AM time window. The AUD/JPY pair can also offer heightened volatility during overnight trading. While the AUD is tied to the Chinese economy, the yen is strongly influenced by the US economy as a major global technology manufacturer and service provider.

Many factors can influence price movement and the timing of such fluctuations. Dependable chart patterns and government-issued economic reports—might be simpler to monitor and trade around. The currency market is most busy in the middle of the week, particularly Tuesday mornings through Thursday afternoons. The New York session, also known as the North American session, generates 16% of global forex volume. The Forex market has a daily turnover of around $5 trillion, and the London and New York sessions still account for the majority of that turnover.

Open Account with Titan FX

Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. Some forex pairs will be more heavily affected by the overlap than others.

Forex is an over-the-counter product, meaning there’s no central physical exchange where currencies can be traded. This is unlike shares, for example, which are traded on stock exchanges. This repetition in market movements, along with slightly increased volatility, means that the trader doesn’t have to sit and trade all day. They can get done all the trading they want to in only 2 or 3 hours.

What time is most profitable to trade?

The opening 9:30 a.m. to 10:30 a.m. Eastern time (ET) period is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time. A lot of professional day traders stop trading around 11:30 a.m. because that is when volatility and volume tend to taper off.

There is high liquidity and volatility in the early hours during the London/New York overlap (1300hrs GMT – 1600hrs GMT), and most assets feature thin spreads. However, volatility and liquidity tend to decrease during the latter half of the New York session. The USD is the cue provider during the New York session, and traders can trade all the major pairs such as EURUSD, GBPUSD, USDCHF, USDJPY, USDCAD, AUDUSD, and NZDUSD.

The European-North American Overlap: 8:00 AM to 11:00 AM

It is important to take advantage of market overlaps and to keep an eye on news releases and time zone factors which affect both sides of a currency pair when setting up a trading schedule. Swing trading involves holding positions for a few days to a few weeks, with an emphasis on using longer time frames to analyse price fluctuations and trends and to detect patterns. Since swing traders typically keep their positions open for more than a day, they utilise higher charts, typically between 4 hours and a week.

  • To see why volatility lines up so well with performance, we need to look at real trader behavior.
  • There are additional factors to consider depending upon whether your strategy is trading trends or trading ranges.
  • Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism.
  • However, reduced liquidity overnight tends to widen price spreads.

The forex market provides the lubrication necessary to make trade among different nations within the global economy function. When a business or government needs to purchase goods or services from another country, the forex market is where the other country’s currency may be purchased in order to consummate the transaction. With City Index, you can trade forex 24-hours a day from 10pm on a Sunday evening to 10pm on a Friday night. You’ll have the choice of trading 84 global FX pairs, with spreads from just 0.5 points. The issues explored here about day of the week in Forex trading are well-known and there are logical reasons for the differences shown here.

The forex market is most noticeably active during the middle of the week, specifically Tuesday morning through Thursday. If you’re looking for liquidity, keep the bulk of your trading locked to the middle of the week. Overnight positions refer to open trades that have not been liquidated by the end of the normal trading day and are often found in currency markets.

best time of day to trade forex

A volatile week for Gold prices as traders try to determine what will be the next trend. The Fed chairman`s speech was negative for Gold prices, sendi… Over this period, the forex market becomes quiet as traders wait for the US market to open.

For our models, we simulated a “typical trader” using one of the most common and simple intraday range trading strategies there is, following RSI on a 15 minute chart. CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.

Is it good to trade forex at night?

Night trading on the forex markets has advantages for new traders as volatility tends to be lower and for experienced traders using scalping or automatic trading strategies that tend to work well with less volatility. However, keep in mind that low liquidity tends to increase buy-sell spreads.

Leave a comment

Your email address will not be published. Required fields are marked *