Right Foreign Exchange Trading Times - When It Is Actually Recommended To Be Active In Currency Markets?

So what are the best foreign exchange trading times? The foreign exchange market is open day and night during the business week, but this does not inevitably mean that all of those 24 hours are beneficial for trading. There is significantly more action on the foreign exchange markets at specific times of the day and frequently the best times to buy and sell are when the exchanges are busiest.

The 2 primary trading floors for currencies are London and the US markets. Even though the UK does not use the euro, most eurozone countries are within 1 hour time deviation from the UK, as is Switzerland. US time zones also include Canada. Thus the London session and the US session in between of them cover most of the key currencies that are traded.

The London trading starts at 8 a.m. UTC and finishes at 4 p.m. UTC. The currency crosses that are most active during this session are the EUR, GBP and USD which is takes part in the majority of all deals.

The US trading starts at 1 p.m. UTC (8.00 EST) and finishes at 10 p.m. UTC (17.00 EST). The most traded forex pairs during these times involve the US Dollar, EUR, British Pound, AUD, the Japanese Yen and CAD.

The busiest exchanging time, as you might suppose, is throughout the three hours when both of these sessions overlap and the exchanges are open in both the UK and the US. This time overlap runs from 13.00 to 4 p.m. UTC (8 a.m. to 11.00 EST).

If you like to leave your orders open over several days it would not make so much difference to you being aware of the busiest periods on the markets. But if you are engaged in currency day trading where you might open and close a trade within a very short period, you will find most trading opportunities popping up during the busiest hours.

If you are trading a cross rate, i.e. a forex pair that does not include the US dollar, you might have another window of time when the financial markets in both countries are open for business.

For instance if you were trading AUD/JPY you could find that trading was sufficiently active during what is called the Asian session. The Australian and Japanese trading hours are pretty close and on a day when activity was anticipated you may find some winning trades during the overlap. However, usually this is a not so active session for virtually all currencies.

Thus the best time for most foreign exchange traders is during that 3 hour window in the morning in the US and the afternoon in the United Kingdom and Europe, when the exchanges are open on both sides of the Atlantic. Trading can be chaotic during those hours, there is maximum volatility and the currencies move far and fast. Most the important economic news is released during this period too, particularly toward the beginning. So these hours are the most beneficial forex trading times if you want to seize quick profits.

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