Sep 05 2008
The best hours to trade Forex
The benefits of Forex trading are attracting investors towards it in hordes. Out of its many benefits the most attractive feature of this trading platform is the option of around the clock trading. This implies that whatever time you may log in for trading there will be someone somewhere on the globe doing the same. what is of importance here is to trade at the best trading hours so as to take in maximum benefit and profit. The trading of currencies begins in New Zealand at Sunday 5 PM IST and is then subsequently joined in by Australia, Asia, Middle East, Europe and America in the same sequence.
This carries on for the entire week and it finally closes on Friday 4PM EST with the closing of the American market. To earn maximum profit one has to log in at the right time when the volume of trade is maximum. To find a good number of profitable trades one has to enter the Forex market at the appropriate time. The time zones enable a continuous trading platform as when trading in one country stops the time zones enable trading to resume in the next time zone. With overlapping business hours and night day time zones, one is effectively left with 5.5 working days open for trading. Another point of grave importance is to always keep in mind that US and UK are the major players in Forex trading supporting almost 50% of the trade with London, New York and Tokyo being the major players.
New York carries out a major chunk of its trading activities in the morning when the European markets are open. Also, it is seen that trading activities reach their peak at overlapping business hours. Therefore, keeping in mind the following facts the best time to carry out trade has been categorized into two major time slots depending upon the overlapping of major markets. These slots are between 2 AM and 4 AM EST that is when the Asian and European markets overlap and then between 8 AM and 12 PM when the European and North American markets overlap. Trading in these time zones would surely help you make the most of your trading skills and provide you with the maximum output.