When is the best time to trade Forex?
In theory, it’s best to trade Forex when the market is most active. The higher the volume of trades occurring at any one time, the higher the liquidity and the tighter the spreads. For example, spreads for major currency pairs are typically low during the London session, which is the busiest session.
However, most traders consider the overlaps between markets to be the best time to trade Forex, with the London and New York sessions having the heaviest overlap. During this time, the market is highly volatile. Volatility can mean spreads widen if there’s a major economic news announcement, but it can also present a wealth of trading opportunities.
The London session is the busiest and peaks in the middle of the week, although fewer people trade on Friday’s, which results in lower volatility. However, it does depend on what currency you’re trading. For example, trading JPY currency pairs is best suited to the Asian session.
Conclusion – Trade Forex CFDs at CAPEX
Understanding Forex market hours is one of the first steps that any aspiring Forex trader can make. While the market is open 24 hours from Sunday evening through to Friday afternoon EST time, the four major sessions – Australasian, Asian, European and North American – mean that market movement fluctuates throughout the day. This affects when it’s best to trade certain currency pairs, like how the London and New York sessions are best for major currency pairs.
Now you’re got to grips with Forex market times, you’re ready to put your knowledge into practice and start trading Forex with CAPEX! We offer over 50 Forex pairs, low spreads and some fantastic trading tools. Simply create an account to start trading Forex today!