What are the best forex trading hours?
Forex trading is a 24 hour, 6 day a week adventure. Anytime that you want the chance to trade, with exception to a 36 hour window, you can. So this begs the question, what are the most active forex trading times?
Forex trading is an around the world activity. It starts in Asia, and works it's way around to the US.
Forex and GMT
Most forex traders view everything in terms of GMT or Greenwich Mean Time.
While time telling around the world can change
with seasonal changes, such as daylight savings time, GMT is always the
same time no matter what the season, so it can be used as a solid
reference if you are tracking events around the world.
SessionsThere are three main forex trading sessions around the world. Asian, European, and the United States. Things get going at 12:00AM GMT with Tokyo trading coming online in Japan. Followed by London, U.K. coming online 8 hours later at 8:00AM GMT. There is a tiny overlap of 1 hour between those two sessions. The final market to come online is New York, US at 1:00PM GMT.
There are 3 major sessions each day in the forex markets. They are the London session, the US session, and the Asian Session.
The London Session
The London session starts around 8:00 GMT and winds down around 1600 GMT. The currencies that are the most active during these hours are EUR, GBP, and USD.
The US Session
The US session starts around 1300 GMT and winds down around 22:00 GMT. The currencies that are the most active during these hours are AUD, EUR, GBP, JPY, and USD.
The Asian Session
The Asian session is a reasonable quiet session on most days. All pairs are pretty slow moving and it is not a good time to day trade. The only real currency that has noteworthy activity is the JPY and the activity is slow unless a major financial event happens.
Summary
The best hours for trading the forex markets, no matter your method, are during the London and US session overlap.
The markets are full of active participants
during these hours and the currencies really move. For the most part,
even the larger fundamental
news comes out during these times. Trading during these hours is your
best chance to get in while the market is making decisive moves and it
will be your best chance to score quick profits.
Most Active Forex Trading Hours
The most active hours are the overlap hours between the London trading session and the New York Trading session. This is the period of time when the market is full of active traders that have large accounts to trade with are trading. With so much money moving around at once, large moves are produced in various currency pairs.
What does it all mean?
This means that you can trade any time you want, but if you like to do live trading, your best chance of making money is between 1:00PM GMT and 5:00PM GMT.
These are, without question, the most active forex trading times.
Most Active Forex Trading Times
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