The best trading hours in the forex market are when the Trade In Forex Market is at its most active hours. At this time, the trading spreads tend to narrow and less money goes to market makers, thus facilitating the currency traders.
Major Foreign Exchanges
The most significant foreign exchanges across the globe are in London, Sydney, New York, and Tokyo. Each foreign exchange has unique trading hours that fall between Monday to Friday. If you are a trader in the forex market, consider the below time windows for maximum benefits-
- New York- 8 am – 5 pm EST
- London- 3 am – 12 pm EST
- Sydney- 5 pm – 12 am EST
- Tokyo- 7 pm – 4 am EST
Though each exchange functions independently, they all trade the same currencies. Therefore, the number of buyers and sellers increases when any two exchanges are open simultaneously. The bids and asks in one exchange affect the bids and asks in another exchange as well. As a result, market spread reduces, and volatility increases.
Generally, the overlap of New York and London exchanges (from 8 am to noon) is considered as the best trading time. These two exchanges cater to more than 50% of the total forex trades. As the U.S. Dollar participates in 90% of currency trades, it exerts knock-on effects worldwide, making the New York Exchange significant for foreign investors.
Some of the dominant forex markets are always the busiest, but there are certain days of the week when all the forex markets show momentum. It is recommended that the middle of the week is the best time to trade forex since, at this time, most actions happen. Researchers have advised that the busiest days are the best time for trade because more opportunities are prevailing in the market due to high volatility.
Disclaimer:
Trading in high volume hours can be risky. Trade In Forex Market-As a forex trader, you should always proceed with caution because currency trade involves high leverage rates.
