• Student of Technical Analysis

Forex Market Hours - When to and When Not To Trade

Currently, the Forex markets have emerged to be one of the largest markets across the globe, with more than 3 trillion dollars being traded every day in the fixed forex market hours. This shows that there is a lot of currency is exchanged, and there are very many traders in the Forex market.


To make more earnings in the Forex market, you need to carefully study various aspects of the Forex market because they are crucial to your trading strategies. One of these aspects is identifying the best Forex market hours or when you should start trading.

This article will examine and discuss the various Forex market hours and sessions that are risky and the best Forex market hours that are the best to trade in.


One of the Forex market's significant features is that it operates 24 hours in a single day and five days in one week. It is a vast market. It is made of banks, different central banks, commercial banks, hedge funds, investment management organizations, the Forex broker, and the retail Forex traders across the Globe.


Therefore, the majority of the international financial institutions have many offices Across the world that allow them to surpass their local customers' foreign exchange to an affiliated branch at any time during the 24-hour forex market hours cycle.


The Banks operate during the normal working hours in every regional office, and then they open the trading book, and it is passed onto another regional office of a bank that is in a different time zone according to the forex market hours.


In every trading session or Forex market hours, the city that has the central financial hub in a particular region is allocated the session title during the place business hours. Suppose you are a trader, and you would like to analyze the best time for trading Forex currency pairs. In such a scenario, you need to have a great understanding of these different regions and which markets and currencies are more liquid during the official forex market hours.


The 4 Major Forex Trading Sessions or Forex Market Hours


The Forex market is usually not actually dominated by only one market exchange; however, it comprises the international network of the Forex trading ad brokers and traders from every corner of the world. The Forex market hours massively depend on the country that you are trading from because depending on your location, there are four major Forex market hours or sessions. They include:


⦁ The New York which opens at 8:00 am to 5:00 pm EST (EDT)

⦁ London- from 3:00 am to 12:00 noon EST (EDT)

⦁ Tokyo opens at 7:00 pm to 4:00 am EST (EDT)

⦁ Sydney 5:00 pm to 2:00 am EST (EDT)


There are also some minor Forex market hours or sessions, and they include:


⦁ Frankfurt

⦁ Hong Kong

⦁ Singapore

⦁ Auckland/wellington


These patterns have a specific pattern that they follow to ensure that if one Forex market close, then another Forex market session opens. As a successful trader, you need to be more active and ensure that you keep track of these sessions.


The Best Forex Market Hours


As indicated earlier, the Forex market opens for 24 hours in a single day. This provides an excellent opportunity for traders all over the world to trade their currency pairs at any time of day or night. Despite that you can trade any time, it is essential to find the right trading time and the key points of becoming a successful trader.


The best forex market hours for you to trade and make a profit is the time when the markets are more active; hence there is a large number of trades going on. The actively traded market will create an excellent opportunity and to make profits.


If you choose forex market hours to trade when the Forex market is not active, then there are fewer trades going on, and hence it is likely to be a waste of your efforts and time. This is why it is not essential to turn on your smartphone or computer to start trading.


The Forex Market Hours when Two Sessions Overlap


There are various Forex market hours when the two sessions overlap.


⦁ The Sydney and Tokyo between the 7:00 pm to 2:00 am EST (EDT)

⦁ The New York and London between 8:00 am to 12:00 noon EST (EDT)

⦁ The London and Toky0 between 3:00 am to 4:00 am EST (EDT)


The Riskiest Forex Market Hours


Even if the Forex market operates for 24 hours 5 days a week, there are various risky forex market hours that you should avoid to trade. The riskiest marketing hours in the Forex markets that you should avoid is the Forex market time at which the Forex market opens and when it is 12 am.


During forex market hours, you should not attempt to invest your deposits because they are risky, and it is possible to lose all your money.


The risky time is during the low Liquidity and usually when it opens. Most professional traders often discourage the opening position anywhere between 12 to 2 am. The majority of these high-risk periods can put your account at the risk amount.


The following are the risk factors which include:


The volatility spikes - This is the low Liquidity that can cause the volatility spikes, and this can also hit you at the stop loss.

Low Liquidity is related to the Forex market's depth, and it affects its ability to handle large transactions effectively.

The Dealing spread- The dealing spreads becomes wider around 12 am time.


Conclusion


In the Forex market, the Forex traders of the Forex participants need to define the low or high volatility that will work the best with their individual style of trading. Traders need to identify the best Forex market hours that are appropriate to trade.


Since the price action is essential, the trading sessions overlap and just ordinary economic times for releasing the times that are the preferable approach. If you consider the EUR/USD pair, the European/ North American session crossover will determine the most movement.

One of the Forex market's greatest characteristics is that it is opened 24 hours and five days a week. This shows that investors from every place in the globe can be able to trade whenever they would like to trade in a week. Even if the Forex traders worldwide have the price action, and it is consistently volatile; however, there are specific forex market hours that you should altogether avoid.


Yours

Student of Technical Analysis




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