Wednesday, October 15, 2008

Forex- Best Trading Times



In his book all about the foreign exchange market in the United States. Sam. Y. Cross says this about electronic trading. “Quoted prices change as often as 20 times a minute.” It has estimated that the world’s most active exchange rates can change up to 18,000 times during a single day. There was a time when it was days, then hours and now seconds. These price movements have allowed traders to go in and out of the market at the pace not possible a few years ago. Active traders can go in and out of the forex market up to 200 times in a single day and take small profits each time they perform these trades.
Like lots of new traders in the market, you’ll probably be asking your self if the market never sleeps, when should I be awake to trade?


The foreign exchange week begins at Sunday 5am Sydney time on Monday mornings. The foreign exchange trading day never cease except for short periods over weekends. At any given time, somebody somewhere is buying and selling currencies. As one market closes another market opens. Business hours overlap, and the exchange continues as day becomes night and night becomes day. Therefore the answer to your question above will be: the massive liquidity of forex, combined with a true 24-hour market that is traded 5.5 days a week. Offers you exceptional independence and choices to trade forex when you want to , not when the market wants you to. Trades actually develop with relatively the same frequency, regardless of time. As long as the forex is open, there is about the same chance that you will find a trade whenever you look. Even though some times are significantly better than other times.


With each passing second, minutes and seconds, Forex trading volume remains high , but peaks highest when the Asian market ( including Australian and New Zealand ), the European market an the US market is open at the same time. Actually only the major markets can overlap at the same time. Here is the break down of open market times.


• New York Market trade times: 8am-4pm EST.
• London Market times: 2am -12noon EST.
• Great Britain Market trade times: 3am -11am EST.
• Tokyo Market trade times: 8pm – 4am EST.
• Australia Market trade times: 7pm -3am EST.


You will notice there are 2 time when two of the major markets overlap in trading times; between 2am and 4am EST (Asian/ European) and between 8am to 12pm EST ( European / N. American) Generally the market tends to make the biggest moves during these over lap and, therefore are usually the best times to trade.

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