Best Time to Trade Currencies
August 22, 2016
One of the biggest attractions with currency trading is that currencies can be traded all day, Monday to Friday. Trading in the forex market isn’t done at one place but by way of electronic communication networks. These centres are in different markets around the world. There is no best time to trade currencies. When the markets are open, you can trade.
Best Time to Trade Currencies – You’ll ALWAYS find a Market
The advantage of currencies is that they trade on every stock exchange. And because of the various time zones, you’ll aways search for and find an open stock exchange during the week. This situation is different to stock trading which you can do only during given times. Before you even think of trading currencies, check out the economy of the country you’re in. For instance, if the Rand, Dollar or Pound weakened, then you’d want to sell Rands in exchange for currency from a country with a strong economy.
There are many benefits to trading Forex, which is why so many people are choosing this way to trade. As already stated, the forex market never sleeps. This situation is a huge advantage for those who are working and deal on a part-time basis according to the different forex trading sessions. Anyone from anywhere in the world can participate in currency trading, but you simply have to know the best time to trade Forex.
Best Time to Trade Currencies –Not ALWAYS Active
While the forex market is open day and night, it doesn’t mean it is always active during the day. The forex market consists of four major trading sessions
– the London session
– the Sydney session
– the New York session
– the Tokyo session
Japan is the 3rd largest trading centre in the world. That’s because the yen is the 3rd most traded currency. London’s forex market opens at 3:00 am and closes at 12:00 pm. New York begins at 8:00 am and closes at 5:00 pm. Open and close times are based on local business hours which will vary during certain months because some countries shift to daylight savings time.
Trading Sessions Overlap – Business Epitomised
When you look at the trading sessions of the four cities, you’ll see there are times where two sessions are open at the same time. So these are particularly busy times. The best time to trade currencies is when the market is active – it just means more opportunities to gamble and make profits.
There are times when the markets are slow and sluggish. Many traders don’t know this – they think that because the forex market is open 24/7 you can trade anytime you like. You can but without success. You have to know the good and the bad times for trading.
Best Time to Trade Currencies – Discover the right Trading Pairs
Once you discover the opening and closing times for each Forex market, you get to know the best times to trade Forex. You also pick up tips and advice from other traders about which trading pairs to go for, For instance, dealers will tell you that the EUR- and GBP pairs trade mostly during the London session.
Central banks around the world need currency for international trade. Every second of every day each country’s economy is growing or shrinking because of some or other instability, and then the Central Banks try to stabilise their country’s currency by trading it on the open market.
Money Offers Great Profit Potential
You can quickly see that the forex market is the largest financial market in the world. You don’t have to have pots of money to trade in the currency market, because-because its profit potential is highly attractive and you can do it anytime.
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All info was correct at time of publishing