The best time to trade Forex

The Forex market is open 24 hours a day, from Monday to Friday. When it is the best time to trade? It would be logical to look for the time periods with the highest liquidity and volatility. The Forex market liquidity is never a problem. This is one of its advantages. When do the major movements happen? There are two answers:

-Upon important news releases;

-When the most market participants are trading.

Each trader must monitor the economic calendar to be aware of the news. However, there is always a risk of unexpected major events.

As per the number of market participants, it is greatest during the workday for a particular region. There will be higher liquidity in a given pair when the financial markets of the relevant countries are open.

If you are based in Europe and want to trade the yen and the Australian dollar, it is best to do it at night. Euro and pound are more active in the early morning, while the US dollar is traded mainly in the afternoon.

Here is a chart with the times when institutions work in the different financial centers. The times are in GMT:


It is advisable to trade when two periods of activity are overlapping. For the European session the most convenient time is in the morning, when traders from London start to participate in the market. The US session begins in the afternoon. Some people trade Asian currencies during the night, but this means they have to change their whole schedule.

* Note: These are not the opening hours of the different stock exchanges, but the approximate times when most of the Forex traders participate. In some places this starts before the beginning of the stock trading session.