Forex operates 24 hours a day, 5 days a week and therefore making it the most liquid market in the world. You should have basic knowledge and skills before you enter this market. Part of the knowledge that you should know is the best time you should enter this very liquid and very large market.
Sure you know how to trade, you know what currency pairs to trade, and you even know how to read charts. Perhaps, you also know one or two strategy when trading in the Forex market. However, you should also consider the fact that because the Forex market operates 24 hours a day, you need to know when you should trade. If you want to the New Zealand dollar against USD, isnt it better to know when is this NZD/USD currency pair the most active. Why bother to trade them when they are not active and you cant maximise your returns.
Forex market beings Monday at 10am NZ Time to Saturday 9am NZ Time then it beings again at 10am NZ Time on Monday. Trading begins in Forex at New Zealand next at Australia followed by Asia, in the Middle East, Europe and ends in America. The major markets in Forex are London, Tokyo and New York with trading activities the heaviest when major markets overlap.
Basing from the times, you will see that there will always be someone anywhere in the world who is buying and selling currencies. You will see that when one market closes, another market opens. Trading in the Forex market is 24 hours a day. Forex market transaction volume is always high during the whole day. However, it peaks the highest when the Asian market, the European market and the US market opens at the same time.
In order to get the highest possible trades (and the most profitable ones) – here are the open market times that you can use as reference (note – times might differ by one hour on either side during our daylight savings period)
• New York – 1am to 9am NZ Time
• London – 7pm to 5am NZ Time
• Tokyo – 1pm to 9pm NZ Time
• Australia – 12noon to 8pm NZ Time
If you look at the schedule and study the times and also their respective charts, you will see that if you concentrate your trading activity during either of the trading hours for the three largest market centers: London, New York and Tokyo, this is where most market activity will occur, especially when one of these three markets open or overlap. And there are two instances where two of the major markets overlap on trading hours. These are between 7pm and 9pm NZ Time with Asian and European markets and 1am to 5am NZ Time with European and North American markets.
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