(MENAFN- Digital solutions)
The Forex market is available for buying and selling trading instruments a 24-hour, 5-day week. Experienced traders already know that without fixing certain hours of Forex trading, it is difficult to conclude profitable deals. If you know when to enter or exit their investments can be crucial for ensuring profitable transactions - especially since fixing certain hours will increase your chances of making big profits.
What are Forex market hours?
Forex market hours are the specific periods of time when participants can transact in foreign exchanges. The main reason why the Forex market works 24 hours a day is that traders are in different time zones. It is suitable both for the ones who trade with intraday strategy or on day trading platforms.
It is necessary to fix active hours when the trading spread tends to become narrow. This time is the most favorable for the trader.
Where are 4 major Forex market exchanges?
There are many different exchanges that you need to keep an eye on in order for your trades to go as planned. Anyways, the biggest of them are located in Tokyo, Sydney, London, and New York. Make sure not to miss any crossovers between these four markets because the crossover leads to market volatility, resulting in a greater chance of big trades.
By knowing the time zones of each market, traders can take advantage and trade in their favorite exchange during its prime hours. All four markets have different trading schedules that will suit anyone's needs. Here they are:
Tokyo - from 7 p.m. to 4 a.m.
Sydney - from 5 p.m. to 12 a.m.
London - from3 a.m. to 12 p.m.
New York - from 8 a.m. to 5 p.m.
What time should you trade forex?
It is difficult to give an objective answer to this question because each Forex trader has their own personal needs and goals. The best trading time for you should be determined based on your trading purposes, the chosen strategy, and the expectations with which you entered the market. Sometimes even the currency pair you chose can matter. You can always discuss it with your broker as well.
However, there are some things according to trading hours that will be useful for everyone. Summarizing the above, let's go through the main points of the best trading hours.
The hours when 2 and more exchange markets are opened is when the currency pair fluctuation will be weighty. That means the chances of good profits will rise.
Regarding the market exchanges, it is believed that the best trading time is from 8 am to noon, when the New York and London exchanges are open. This is the most common time when 50% of Forex traders make deals.
To determine the best trading hours for you use an economic calendar. It helps to figure out which times are good or bad when you're looking at the market, and what events might affect the decision you want to make.
The ability to combine trading skills and pick the most active trading hours can lead you to great success in the Forex industry. As a beginner, it can seem complicated at the first sight, but choosing the broker that will advise you in what direction to move and provide all the necessary things you need, the trading process will become easier day by day. The beginners can try to trade with STP Forex brokers, that send orders directly to the market without any intervention from a dealing desk. This means that your order goes straight to the liquidity providers who make up the market. The main thing is to stay vigilant during active trading times and not afraid to take risks.
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