Do you know the best time to trade forex? Here is an very informative guide about best forex times. Unlike stock markets, the currency trading market is open 24 hours a day during the 5 days in a week. However this doesn’t imply that the currency trading market is getting the same number of trades or price changes throughout these days. There is much more business on the currency trading markets at certain times of a day and generally speaking, the best times to trade are when the markets are most active.

The two largest trading floors for currency trading are UK and the New York markets. Even though the United Kingdom does not use the euro, most European countries are within one hour time difference from the United Kingdom, as is Switzerland. American time zones also include Canadian. So between the US and UK sessions cover most of the major currencies that are exchanged.

The England foreign exchange center begins at 8.00 UTC and finishes at 16.00 UTC. The foreign exchanges that are primarily active during this foreign exchange center are the euro (EUR), British pound (GBP) and US dollar (USD) which is involved in the majority of currency exchanges.

The US foreign exchange center opens at 13.00 UTC (8.00 EST) and closes at 22.00 UTC (17.00 EST). The most traded currencies during this Fx market are USD, EUR, GBP, AUD (Australian dollar), JPY (Japanese yen) and CAD (Canadian dollar).

The most active trading hours, as you guessed, is during the 3 hours when these 2 market sessions overlap and the markets are open in both UK and US. This period runs from 13.00 to 16.00 UTC (8.00 to 11.00 EST).

Trades who like to use a forex EA like Forex Derivative and a robot like Autopilot Forex Trading or let the orders run over many days it may not make too much difference to learn about the busiest times on the forex markets. But if you are doing day forex trading where you might open and close a trade within a few minutes, you will find a large number of opportunities coming up during the above mentioned hours.

In case you are trading in cross rate, i.e. a currencies that do not involve the USD, you might have another window of time when the currency exchange centers in the two nations are live for business.

Imagine if you are dealing with AUD/JPY you may find that trading was busiest during what is called the Asian session. The Australian and Japanese business hours are very close and on a day when trading was anticipated you might find some money making trades during the overlap. However, generally speaking this is a slower Fx market for just about all currencies.

Therefore the best currency traders is during that 3 hour window in the early hours in the United States and the afternoon in London and Europe, when the currency trading markets are live on both sides of the Atlantic. Business can be frantic during those hours, there is utmost liquidity and the currencies are volatile. A lot of the important financial news is released during this period too, particularly toward the starting. So this window of time is the best currency trading times if you want to make quick profits.

If you enjoyed this post, make sure you subscribe to my RSS feed!