Right Forex Trading Time

What is the most profitable trading time in forex market? Here is an excellent article about Forex trading times. Unlike stock trading, the currency trading market is open 24 hours a day during the 5 business days. However this doesn’t imply that the currency trading market is getting the same number of trades or price variations throughout these days. There is a lot more activity on the currency trading markets at certain times of a day and usually, the best times to trade are when the trades are most active.

The two leading trading floors for currency trading are London and the US markets. Although the United Kingdom does not use the euro, the majority of countries in EU are within few hours time difference from the United Kingdom, as is the Swiss market. USA time zones also comprise Canadian. So the London session and the US session between them cover a large amount of the key currencies that are exchanged.

The London Fx market starts at 8.00 UTC and finishes at 16.00 UTC. The foreign exchanges that are most involved during this Fx market are the euro (EUR), British pound (GBP) and US dollar (USD) which is involved in the majority of currency trades.

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

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

If you like to use a forex EA like Forex Derivative System and a robot like Forex Auto Pilot or let the trades run over a number of days it might not make too much difference to know the peak hours on the currency trading markets. But if you are interested in day forex trading where you will open and close a trade within a short period of time, you will notice majority of the opportunities coming up during the above mentioned hours.

If you are involved in a cross rate, i.e. a currency pairs that do not consist the US dollar, you might have another time frame when the currency exchange centers in those two countries are live for trading.

Let’s assume if you were trading AUD/JPY you might notice that trading was good during the Asian session. The Aussie and Japan trading hours are very close and on a day when activity was expected you might find some money making trades during the overlap. However, So the best session for most traders traders is during that 3 hour window in the early hours in the United States and the afternoon in England and Europe, when the currency trading markets are live on both sides of the Atlantic. Trading can be crazy during those hours, there is utmost liquidity and the currencies fluctuate. A number of important economy news is released during this period too, especially toward the starting. So this time period is the best currency trading times if you want to build quick cash.