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• On the other hand, in an illiquid market the spread between the bid and ask may be very wide and not very deep.
• Similarly, for Friday, people want to pack up for the weekend, so they don’t really want activity trade that much.
• Not only can this strategy deplete a trader’s reserves quickly, but it can burn out even the most persistent trader.
• They are still almost as unpredictable as they had been on Thursday.
• Dependable chart patterns and government-issued economic reports—might be simpler to monitor and trade around.
• It is during this period where we can see some big moves, especially when news reports from the U.S. and Canada are released.

The ability to trade 24 hours a day is mostly a function of how the forex market moves its activity between the different trading sessions during their corresponding time zones. The Best Time to Trade Forex need for businesses to be able to sell or purchase currencies at any time is also another key reason why currencies are traded around the clock during the global business week.

London

Just because currencies may be traded 24 hours a day doesn’t mean all trading hours offer equal opportunities, volatility or liquidity. Understanding the advantages and disadvantages of each time frame during the forex trading day can make a significant difference in your forex trading success.

The table below has information about some popular forex pairs and their average daily pip movement over a 12-month period starting November 2018 during the Tokyo session. A good trading strategy can help you predict the timing of these trades with some accuracy, but no strategy is foolproof. Looking at the worst time to trade forex, there is nothing more slumber-inducing than the late Sunday/early Monday crossover.

Popular Forex Currency Pairs to Trade

Your forex best time to trade can be affected by various types of news. The Australian market opens at 9 pm UTC and closes at 6 am UTC. Based on this information, it is easier for you to decide when is the best time of day to trade forex. You can trade based on the Sydney, Tokyo, London, or New York exchanges working hours. Daily, they account for almost 75 percent of forex trading volume. The first session to open is usually Sydney which opens at 10 pm UTC on Sundays.

For now, Leung’s Revinitiv is analyzing U.S. interest rates, U.S. equities, and unemployment. Any currents in the data points indicate sustained dollar strength. Tools such as currency strength meters can be used to further examine the strength of individual currencies, as opposed to currency pairs. https://www.bigshotrading.info/ When the U.S. and London forex markets overlap, activity can quickly resemble that of Grand Central Station. Yes, you can certainly trade forex at night in the country you are based in. Popular forex pairs such as the EUR/USD for example, are subject to less volatility because of reduced liquidity.

Forex Trading Hours in the U.S. ??

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• According to the latest data from FXLIQUIDITY, an analytics service for the FX market, liquidity is at an optimum level around 10 am and 3 pm London time .
• The London session starts from 3 AM to 12 AM Eastern Daylight Time .
• The most important of them is the New York, London, Sydney and Tokyo sessions, which span over different time zones, making the Forex market active 24 hours a day, 5 days a week.
• Forex market hours refers to the specified period of time when participants are able to transact in the foreign exchange market.