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Beginner

Venturing into Forex for the first time?
Explore the basic concepts of buying and selling.

When can you trade Forex?

In case you are wondering is Forex trading profitable, the short answer is yes. But many opt for Forex traders to make fast profits since Forex markets are operational 24 hours for five days a week. While this may make it easier to trade at your convenience, many Forex traders are unsure about the best time to trade Forex for maximum returns. Forex market functions as per the trading hours on the four major Forex exchanges that are located in London, New York, Sydney, and Tokyo. Many first-time traders try to trade through the night to make the most out of their investment as the exchanges are located in different time zones. Unfortunately, this is not a sustainable strategy. So let’s take a look at the best time to trade Forex to help you create a smarter investment schedule and improve your chances of making a profitable trade: Here are the most important time frames of the stock exchanges:

  • London: 3 AM EST to 12 PM EST
  • New York: 8 AM EST to 5 PM EST
  • Sydney: 5 PM EST to 2 AM EST
  • Tokyo: 7 PM EST to 4 AM EST

These exchanges trade the same currency even though they work independently. That’s why if two exchanges are open simultaneously, the trade volume increases due to several traders buying and selling. It also impacts the spreads and increases volatility. Typically, the best time to trade Forex would be as follows:

  • Both New York and London exchanges are open (i.e., 8 AM EST to 12 PM EST)
  • Both Tokyo and Sydney exchanges are open (i.e., 7 PM EST to 2 AM EST)
  • Both Tokyo and London exchanges are open (i.e., 3 AM EST to 4 AM EST)

In other words, the overlap between the timings of two stock exchanges makes the best time to trade Forex. As per market data, most traders also consider Tuesday, Wednesday, and Thursday as the best days to trade Forex due to increased volatility.

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