The Best Time To Trade Forex Currency Pairs

The best time to trade the currency market/currency pairs, is when it is the most active and therefore has the biggest volume of trades. A fast currency market means more opportunity for price movements, either up or down. A slow market generally means not much is happening/low volatility.

The greatest volume of currency transactions goes through during London time, followed by New York and then Tokyo hours. London time therefore is the center of the currency trading universe.

What does this mean to the average Forex trader, and is there a best time to trade a currency pair?

Yes, there is a best time to trade currency pairs. Let’s take a look at overlapping trading times.

The Forex market starts with Japanese traders between 8:00 pm to 4:00 am EST. At 3:00 am EST London traders start their day and finish at 11:00 am EST. New York traders open at 8:00 am and finish at 4:00 pm EST.

If we are trading EUR/USD, USD/GPB currency pairs we must look at when the trading time for these pairs overlaps. Therefore, the best time to trade the currency pair: EUR/USD and USD/GPB is between 7:00 am and 11:00 am EST when the 2 markets for these currencies are most active. (ie. when they are overlapping).

Forex trading is a zero-sum game and we as traders must try to do everything possible to get that extra advantage over our competition and swing the odds in our favor. Choosing the best time to trade the currency pair we have selected is one of the things under our control that can easily be done.

Another thing Forex day traders should be aware of related to the best time to trade is that Mondays and Fridays are generally poor days to trade. Why is this?

Empirical research/data suggests that Monday trading is usually tentative as the market is trying to make careful steps to confirm or establish a trend. Fridays are also poor days due to the huge amount of closing trades on that day.

The bottom line- The best time to trade the currency pair of your choice is when trading in that particular currency is the most active. The best days to trade the currency markets is more than likely between Tuesday and Thursday.

“Know what you know. Know what you don’t know. And always be open to learning new things.” Michael “MJ The Terrible” Johnson – Founder & Owner – Masters of Money, LLC.

What Are The Top Traded Forex Currencies? –

Risk disclosure: *All investments involve risk. Before making any financial or investment decisions, we highly advise that you seek the advice of a properly licensed and trained investment professional.

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