Best Times To Trade Forex Market

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Best Time to Trade Forex

On the other hand, when just a single market is open, the currency pairs are more likely to only move by around 30 pips. When two markets open together currency pairs can quickly slide by around 70 pips, particularly when major news is announced, which we’ll discuss later on in the article. As with so many other instances in trading, there is no one ‘perfect’ or Best Time to Trade Forex. However, there will be times that are perhaps better than others, or times that will better suit a particular trading style or currency pair. While the forex market is open 24 hours a day, five days a week, each day is broken up into several sessions. The Asia-Pacific session opens first, followed by the European session, and then finally, North America.

Still, keeping to a consistent trading schedule usually wins in the long run and typically offers a better night’s sleep. Fundamental currency traders might instead focus on the key economic data that are released on a published schedule each month.

Benefits of Sticking to a Trading Schedule

We have constructed a strategy that closely models your “typical trader”. We simulated the strategy’s performance trading the EUR/USD 24 hours a day over the past ten years. One heatmap is for trading all 8 currencies in the Asian trading session, and there is a separate heatmap for trading in the main trading session, very logical. But the correct news and trend setups do not occur but a few times per month.

  • The extra liquidity facilitates more flexbility for traders during this trading session.
  • Forex markets are “open 24/7” in a sense because different exchanges around the world trade in exactly the same currency pairs.
  • The middle of the week typically shows the most movement, as the pip range widens for most of the major currency pairs.
  • Just because currencies may be traded 24 hours a day doesn’t mean all trading hours offer equal opportunities, volatility or liquidity.

News drivers like unemployment rates and GDP can drive price movement. So these times might be good for potential trades in this session. Pips are possible on 28 currency pairs, including the EUR/USD, every day in this trading session.

Latest market news

Fridays – liquidity dies down during the latter part of the U.S. session. From a trading standpoint, this daily fix may see a flurry of trading in the market prior to the fixing time that abruptly disappears exactly at the fixing time.

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