best time to trade forex

A lot of people trade forex, and they have had many experiences in their life that can help others. It has become apparent that a lot of forex traders face problems becoming a successful trader because they trade during the wrong time of the day. So, what is the best time to trade forex?

The traders should trade during the early-European, or late-US, Asian trading sessions — particularly 7 PM to 11 AM UK time, which is 2 PM to 6 AM Eastern Time (NY).

The best time to trade forex market is when it is at the peak activity levels when the trading spreads (the differences between ask prices and bid prices) ten to narrow. In these circumstances, less cash flows towards the forex market makers who help currency trades, leaving more cash for the selling and buying investors.

What is the best time to trade forex?

Currency trading is considerably unique as its hours of operation are unique. The currency trading week starts at 6 PM EST on Sunday, and it ends at 5 PM on Friday. People usually think that all hours are equally good to trade, but that isn’t true. The optimal time to trade is when the forex market is peak active. It is when 2 of the 4 major forex markets are open, the trading atmosphere will be heightened, which indicates that there will be greater variations in the currency pairs. When only a single market is operating, the currency pairs usually get locked in a tight pip spread of close to 30 pips of movement. But when 2 markets are operating, there can be an easy movement north of 70 pips, mostly when great news is released.

Volatility can be good sometimes

It is the rate and extent to which a currency price varies, and many forex traders fear this word, it can be beneficial. If there is no volatility, then the price would stay still, and there would be no chances to make a profit off of price variations. This is something a forex trader cannot afford, as it is what forex trading is all about. And keeping in mind the nature of major forex markets, when 2 major markets are operating, trading volume rises, along with their volatility.

Sessions Overlap in Forex Trading

The best time to trade forex is when volatility is rising, and the maximum volatility is usually when 2 trading sessions overlap one another, as 2 or more global exchanges are operating simultaneously.

The Tokyo and Sydney are mostly operating simultaneously and they make up the Asian trading session, which generally notices less movement as compared to the other markets, although there is higher pip variation than at the time when a single exchange is operating. Thus, the slight London-Tokyo overlap can be disappointing as the US forex traders are asleep, the European traders are starting their day, and the East Asian traders enter the late afternoon.

The real action takes place during the New York-London overlap, as the 2 biggest financial centers of the world operate simultaneously. The Euro and US dollar are 2 best currencies to trade, and this overlap makes up the major amount of the global trades. This is the best time to trade forex, particularly if you are trading GBP/USD or EUR/USD currency pairs.

The Best Time Is Not Always Profitable

The foreign exchange traders should work with great caution, as the trades usually involve high leverage rates of 1000 to 1. Although this ratio offers tormenting profit possibilities, it also comes with a risk of losing all the investment in one trade. It is said that the majority of the forex traders have lost their money while taking the risk of going all in. So, what is the best strategy to follow? Well, you should open accounts on the platforms that offer a demo account, that allow you to do fake forex trades and see unreal losses and gains until the investors know enough about trading.


  1. From what I have seen the Tokyo and European session overlap is not the best time to trade. There usually isn’t much going on during the Asian session and it seems like after the afternoon it is pretty much down hill. Also, this is when European traders are just arriving to their desks, so liquidity tends to be pretty dried up at this point.


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