Most of us know the advantages that online Currency Trading can offer compared to other investment instruments, including high leverage, free online trading platforms, and almost round the clock trading.
However, just because the currency market has very flexible Forex trading hours doesn’t mean that you should trade anytime you like when you feel like it. before you can start live trading, you need to determine when the best forex trading hours for your chosen strategy are.
Most of the most popular forex trading strategies work best at a time when the market has the highest activity and the volume of transactions is at the peak.
Do you know that the majority of forex transactions come from the American, UK, and Japanese markets? The amazing thing with currency trading is that while a market always opens while another is closing, thus ensuring 24-hour trading, there are certain times when markets overlap. And when major markets like the above 3 overlap, it makes for some pretty heavy trading volumes. therefore, the best forex trading hours for most strategies are when major markets overlap.
We can determine that there are 2 trading windows open when 2 major markets overlap. These are between 2 am to 4 am EST (London and Tokyo) and 8 am to 12 pm EST (New York and London). Additionally, another interesting trading time interval is from 7 pm to 2 am EST when the Sydney and Tokyo markets overlap.
Depending on which region of the world you’re in, you may have to get up early or sleep late in order to execute your preferred strategy. Nobody said that online currency trading is an office hour only job, that is unless you’re lucky enough to be living in the region where heavy trading is taking place. The ideal forex trading hours are very important to every forex trading strategy and trading randomly is a very fundamental mistake that many traders make.