One of the questions many inexperienced forex traders ask about is about forex trading times: When Is The Best Time To Trade Forex? Unlike other markets, like the stock market, the forex market trades 24/7 (Actually 24/5). The forex market opens for business Sunday night (5 PM EST) and closes for businessagain on Friday afternoon (4 PM EST). First the Asian market begins, then the European, then the US, then the Asian and so on, This gives you total freedom to trade aroun the clock.
Not all times are every bit good for forex trading.
The question is 'When To Trade?'.
We will to try to answer that question here.
Asian Session (Tokyo) (7PM : 4AM EST):
The Asian forex trading session begins at 7 PM EST (12 AM GMT) and closes at 4 AM EST (9 PM GMT). In this forex trading times the most often traded currencies are GBP/JPY, GBP/CHF and USD/JPY. These forex pairs can fluctuate 110 pips.
U.S. Session (New York) (8 AM : 5 PM EST):
The US session kicks of at 8 AM EST and closes at 5PM EST. The US ishighly volatile, because of influence from other markets such as the Stock or Bond market. The most traded currency pairs during these forex trading times are this session: GBP/USD, GBP/JPY and USD/JPY which fluctuate around 95 pips. There is also trading in USD/EUR and USD/CAD.
European Session (London) (2 AM : 12 PM EST)
London is the biggest and most important trading center in the world at a market share higher than 30%. The absolute majority of all Forex trades in the market are executed out in these forex trading times due to of the liquidity and efficiency of the market. All major currency pairs are traded during this session. For risk loving traders the GBP/JPY and GBP/CHF have very high fluctuations of up to and even surpassing 140 pips.
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