Understanding Forex Trading Hours To Your Advantage

Knowing that Forex market operates 24 hours a day should help you to plan your trading activities more effectively.

There are four markets that are considered to be the major ones and they are the UK, Japan, Australia and USA market. Each of these forex markets has their own opening and closing time. You need to find out what is the exact time they take place according to your time zone so that you can plan your trading activities without affecting your daily chores.

You should also consider trading the currency pair during their forex time zone because that is when the most volume will occur. That doesn’t mean you shouldn’t trade outside of its time zone, but you’ll probably experience lower volume change.

There are four main Forex market hours that you should aware of, and they are the USA market which operate from 8 a.m. to 5 p.m. EST, while the UK market is on 3 a.m. to 12 noon EST, 5 p.m. to 2 a.m. EST for Australia market and finally 7 p.m. to 4 a.m. EST for Japan market.

There will also be a period known as crossover time that occur when two different time zones clashed and causes sudden increase of volume and volatility. You might want to target this specific time because you will have higher chance to profit during this volatile movements.

Statistics shows that the US dollar is the most traded currency in the forex market. In fact, it is traded 2.5 times more frequently compared to Euro. That is the reason why the USA market considered to be very influential.

You should stop trading around 8pm UTC if you’re trading the US dollars because that is when NYSE is slowing down. You might want to use this time to analyze your forex trade and do some reading to improve your trading skill.

While it is true that forex market is open 24 hours a day, you shouldn’t trade all day long because that is not going to be productive. Choose a specific time where you can devote your focus on forex trading entirely and you’ll reap better profit in the long run.