The Best and Worst Times to Trade Forex

If you trade Forex, or if it is something you are looking into doing, there are many things you need to think about. The Forex market is open and active 24 hours a day, 7 days a week and that’s why it’s important to keep track of when is the best time to trade. By trading at the optimum times, you can ensure that you get the most for your money and have the best chance of success. You will also know when the market is going to be it’s most volatile and when it is important to stay away.

One of the reasons that Forex presents so many opportunities is because there are so many different time zones where the markets make money all around the world. The Far East market, New Zealand, Australia, Asia, Europe, and North America markets all open and operate at different times of the day, providing you with ample opportunities to make the most of trading Forex and getting more bang for your buck.

Here we explain the best and worst times to trade Forex. Remember that if you are looking to get into Forex or to improve the way you trade, there are a host of the best forex brokers out there that you can speak to who can improve your chances of making more money from trading. 

When the different trading sessions around the world coincide

As mentioned above, the different trading zones around the world open at different times. This also means that they will eventually overlap, creating ample opportunity for you to trade. There are many overlaps throughout the day, the busiest of these is London, with New York following behind at a close second.

When both of these major markets trade at the same time it offers a host of opportunities that you can make the most of. One of the most popular times for a London/ New York trade time tends to be 2 pm and it’s worth making the most of this. The Sydney and Tokyo overlap between 12GMT and 07GMT is also considered to be a good time to trade thanks to the markets being very busy and active during this time period.

Australia and Asia overlap tends to happen between 9 pm and midnight, while the Asian European overlap happens between midnight and 3 am. A lot of markets might open simultaneously within these time periods so it’s a good idea to make the most of these.

On a Monday

While the majority of the week offers the same opportunities for trading Forex, Mondays tend to be the best days, with Monday afternoons, in particular, offering a host of benefits. The reason for this is because on a Monday the market really heats up after the weekend that has just been and it can present some great opportunities. 

When peak liquidity is the case

Peak liquidity tends to begin occurring on Tuesdays and this height of peaked activity continues until Thursday. Mid-week is the best chance for peak liquidity and so if this is what you are looking for, this is considered the best time for you to trade Forex. Again, speak to some top brokers for advice on when is the best liquidity for you and what will offer you the best chance to make the most money from your Forex stocks.

Keep an eye on the worst times to trade

While there are many great times to trade Forex, it’s vital that you keep an eye on the market and are aware of all the worst times to trade too, to avoid losing money unnecessarily. Some of the worst times include between 5 pm and 7 pm as this is when the New York forex market is closed.

Late in the day on Sundays and early in the morning on Monday are also considered a bad idea due to the fact that they are very slow markets and are the time when businesses assess what they are looking to do with their funds in the week ahead, rather than spending them. People will also be waiting for the news reports to come out that might have an influence on the Forex market, so nothing will be done until this happens, something that can have a big influence. 

Another of the worst times to trade Forex is when it is a bank holiday or public holiday. The banks have a large influence on the trading market so when they are closed it can be detrimental to all involved.

These are some top tips for you to follow when it comes to following the best and worst times to trade Forex. Forex is one of the leading global marketplaces for exchanging currencies and therefore can be a very profitable investment when it’s done correctly. Be sure to keep an eye on the market and speak to an expert in Forex trading should you need any assistance.