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Best Times to Trade Forex [Tested Schedule]

Mark John

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Best Times to Trade Forex

Photo by Luca Sammarco from Pexels

When you want to trade or invest in the foreign trade market, timeliness is a very important thing. You always should be concerned about the best time of trading. The foreign exchange market is not like the stock market. In the different time zone, the value of currency also differs.

In the foreign exchange market, the traders and investors also have the freedom to choose their own trade interests. In that case, timing is a very big deal. If we see objectively, then there is no best time or worst time in the forex trade. But it always depends on the individual interests and preferences.

In this writing, we are going to discuss the best times to trade in the foreign exchange market. So keep reading to learn more.

What is Forex Liquidity?

In every transaction, you may need to find a counterparty, and this is also known as liquidity. Sometimes, it can be an issue for the financial market but not in the foreign exchange market. Again, when you choose the best time for trading, the liquidity will not affect you in this regard.

But if you are well-known about the market’s liquidity, then it will be easier for you to choose the best trading time. In most cases, the retail trader seeks help from the broker in order to pick the best time. But if you have knowledge about forex liquidity, then you can do it by yourself.

What is Market’s volatility?

At a particular time of a day, the price rate can be reached at an insane point. And this is also known as forex volatility. Volatility in currency pair plays a very vital role in the forex market if a trader understands the market’s volatility.

Then it would be so easier and simple for them to understand the market strategies and trading schedule. This is how it will help an individual to adjust the difference between major losses or profits. Again, you need to always remember that the best forex trading time does not mean the volatile period.

Best Time of Forex Trading

As we have known that the best time of trading in the foreign market will much more dependent on the trading strategies. That is why you must need to set some goals in your market. You can observe the market and can make your own time frame to identify the trade entries.

Forex Trading Time Frame

Usually, the traders make different time frames in order to get a different outcome. A day trader always tries to hold the shorter period of time frame. They always have trading styles in order to pick the best time frame of the market.

In the different trading strategies, the trading time frames also vary accordingly. This time frame can fluctuate on a daily, weekly, or yearly basis.

In most cases, new traders try to avoid these issues with time framing; as a result, they cannot approach any long term trading to develop their strategies.

Forex Market Time Frame In The World

Each trading market has a unique trading style and hours. But there is some average time frame according to most trader’s opinion. Mainly they focus on four important time frames worldwide. They are in the following;

London: 3 a.m. to 12 p.m. (Eastern standard time)
New York: 8 a.m. to 5 p.m. (Eastern standard time)
Sydney: 5 p.m. to 2 a.m. (Eastern standard time)
Tokyo: 7 p.m. to 4 a.m. (Eastern standard time)

In some cases, in these time periods, the currency exchange tends to function independently. When an individual trader buys and sells in that time period, the currency rate increases in a significant way. That is why in order to get the expected outcome, you just need to have a good time frame for the market.

The Bottom Line

The best time of trading in the forex does not really deal with an individual or specific time frame. Sometimes, it is also possible to find good opportunities without having a clear time frame. It is always depended on how you utilize the trading strategies and the time frame of the different time zone.

You can find out and explore more on the internet. And if you a new trader and want to start with 100 dollars. Then you can find out more here (i.e., forex trading with 100 dollars). Hopefully, this writing helped you to know Best Times to Trade Forex.

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