In the world of the trader its not enough to know how to trade you also need to know when you can trade. What are the best forex trading hours? The forex markets open at different times around the planet and it is important to relise that not every hour of every day is going to be busy.
Although it may require some bizarre sleeping habits you can trade forex 24 hours a day. Because it is a global market the best forex trading hours could be in the middle of your night. The three major markets are the US Session, the UK Session and the Tokyo session and the markets are open as follows:
Tokyo market opens 0:00
Tokyo market closes 9:00
London market opens 8:00
London market closes 17:00
US Market opens 13:00
US Market closes 22:00
All times are GMT.
The more astute reader amongst us may have spotted that there is actually a couple hours where you can catch some shut eye!
The busiest times are when two markets are open at the same time, obviously the more people that are trading the greater volume is being traded and these cross-over points are when you can usually make the most profit. The London forex session is obviously the one to aim for. With two cross-over points it is the busiest.
Mid week is when the markets are the busiest. Tuesday and Wednesday are the busiest trading days with Sunday being the quietest for obvious reasons Even the forex traders to want to work weekends!
Fridays and Sundays are notoriously difficult to make any money with forex. They are unpredictable and often very quiet at the best of times. The shear lack of volume makes the odds of making big profits extremely bad.
Not every body has the luxury of being a full time forex trader. A lot of people are part time and simply can’t sit in front of the screen during the busy periods. The solution is to swing trade; you can check the charts a few times a day. It’s not quite as exciting but its still a good way to earn a living.