For successful Forex trading it is important to understand what the best hours for trading currencies are. Although FX market is open 24 hours a day but there are some specific times which are more productive. XFR Financial Ltd will discuss here about the busiest trading sessions, best hours in a day and most productive days of the week.
Major Forex trading sessions
Let us take a common time of reference to avoid confusions. Take GMT as the standard time of reference here. The most active session is in London which is the most active market for trading. It has more than 30 percent of the FX trading volume. The opening time of this market is 21:00 GMT and closing is 05:00 GMT. The next important markets are New York, Japan and Sydney. The opening and closing time of New Your FX exchange is 23:00 GMT and 07:00 GMT. For Japan it is 07:00 and 16:00 respectively. For Sydney opening time is 12:00 GMT and closing is 21:00 GMT.
Best trading times of a day – UK and US Sessions
The two busiest sessions of Forex trading are London and New York sessions. The best hours are therefore when these sessions overlap and traders can therefore perform trade more productively here. Many FX traders consider 14:00 GMT as the best FX trading hours because London is preparing to close while traders are getting ready to move into the market of New York. A greater opportunities for profit is caused at this time because of major swings expected at this time.
When the London session opens then also it is a productive time because it overlaps with the closing time of Tokyo’s session. Sydney and Tokyo overlap time is not so significant as London and NY sessions overlap because this is late evening or night for the rest of the world.
What are the best days of a week for trading at XFR Financial Ltd?
Mondays are usually slower in Forex trading as the news are just in the starting phase of preparation. But it does not imply that you can’t trade with XFR Financial Ltd on Mondays. The most active part is the middle week when you have Tuesday, Wednesday, and Thursday. First part of Friday is also active usually and the next goes slower as the weekend approaches. You can see that the Forex exchange trading follows the work-life balance where half of the week is favorable for work and rest of the week is slower in pace and favorable for recreation and other activities.
Knowledge of these suitable trading timings is a must for every XFR Financial Ltd FX trader. It is not mandatory that a trader trades on all these favorable sessions and hours and he should choose a sustainable time which is both productive and suits best for him.