When to Trade Forex

What is the most profitable trading time in forex market? Read this very infomative guide about Best Time to Trade Forex. Unlike stock trading, the currency trading market is open 24 hours a day during the 5 days in a week. However this doesn’t imply that the Fx trading market is enjoying the same number of activities or price variations during all these days. There is much more activity on the Fx trading markets at specific times of a day and usually, the best times to trade are when the markets are busiest.
The two major trading floors for currency exchange are London and the New York markets. Though the UK does not use the euro, most European countries are within one hour time difference from the Great Britain, as is Switzerland. USA time zones also include Canadian. So between the US and UK sessions cover the largest part of the major currencies that are exchanged.
The England market starts at 8.00 UTC and finishes at 16.00 UTC. The currencies that are most active during this Fx market are the euro (EUR), British pound (GBP) and US dollar (USD) which is involved in the majority of currency exchanges.
The USA session begins at 13.00 UTC (8.00 EST) and closes at 22.00 UTC (17.00 EST). The most traded currencies during this currency exchange session are USD, EUR, GBP, AUD (Australian dollar), JPY (Japanese yen) and CAD (Canadian dollar).

The nost active trading time, as you can see, is for the period of three hours when the US and UK foreign exchange centers overlap and the markets are live in both UK and New York. This time frame runs from 13.00 to 16.00 UTC (8.00 to 11.00 EST).

If you are a person who like to let the orders run over several days or would like to utilize an automated forex trading robot it may not make so much difference to know the peak times on the currency trading markets. But if you are interested in day forex trading where you have to open and close a trade within a short period of time, you will notice majority of the opportunities coming up during the busiest times. And some times doing the trade by yourself during this time period can beat the Best Forex Software available.

In case you are dealing with cross rate, i.e. a currencies that do not involve the US$, you may have another trading time when the forex centers in the two countries are open for business.
Let’s assume if you are forex trading in AUD/JPY you will find that trading was most active during the Asian session. The Aussie and Japan business hours are very close and on a day when trading was expected you might find some money making trades during the overlap. However, generally speaking this is a slower times for just about all currencies.
Therefore the best session for most traders is during that three hour session in the early hours in the US and the afternoon in England and Europe, when the currency trading markets are open on both sides of the Atlantic. Business can be frantic during those hours, there is high liquidity and the currencies fluctute. A lot of the important financial news is released during this period too, especially toward the starting. So this window of time is the best currency trading times if you want to build quick profits.