A Beginners Guide To Trading Forex
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Best Forex Trading Times

Best Trading Times

The forex market is open 24 hours a day during the business week, but this does not necessarily mean that all of those 24 hours are perfect for trading. In general, the best times to trade are when the markets are busiest or have a degree of volatility.

If your system involves letting your trades run over several days this may not make so much difference to you. But if you are involved in day trading or scalping where you might open and close a trade within a few minutes, you will find that more opportunities come up during the most active hours.

The two biggest trading floors for forex are in London and New York. Although Great Britain does not use the euro, most euro countries are within one hour time difference from London, as is Switzerland. US time zones also include Canadian. So the London session and the New York session between them cover the time zones of most of the major currencies that are traded.

The London session starts at 8.00 UTC (3.00 a.m. EST) and finishes at 16.00 UTC (11.00 EST).

The New York session starts at 13.00 UTC (8.00 EST) and finishes at 21.00 UTC (16.00 EST), although trading in the US continues in Chicago until 22.00 UTC (17.00 EST).

The whole of these two sessions can be good for most traders. For day trading, the peak trading time is during the three hours that the markets are open in both London and New York. This period runs from 13.00 to 16.00 UTC (8.00 to 11.00 EST).

If you were involved in a cross rate, i.e. a currency pair that does not involve the US dollar, you might have another window of time when the financial centers in your two countries are open for business. However, we are concentrating on EUR/USD so it is best if you can be online to trade for part of the UK/US combined business day between 8.00 UTC (3.00 a.m. EST) and 21.00 UTC (16.00 EST).

 

Next Page: How To Trade Forex – Buy or Sell?

 

 

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