Trading Times of Forex Market
It requires a lot of information to trade forex pairs whether using the binary options or spot market. This information is basics and many traders skip this. Alternatively, they search for the trading strategies. Around the world, bank and business are open at different times and for that reason, the forex trading market opens for 24 hours a day.
Thus forex pairs provide liquidity. Every hour has different trade tendencies and it depends on the open global business. If you understand better the forex market trading hours and hourly trading tendencies, you will be able to find the better opportune times to implement your trading strategies.
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Forex Trading Market Sessions
Throughout the whole day, the major trading market is open around the world at different times. It affects on the forex pairs directly on the fact of liquidity and volatility.
As the example, during the New York and London sessions the EUR/USD is the most volatile and liquid, especially during the period of overlap when both New York and London are trading. In the case of USD/JPY has the most volatility because Tokyo opens first and after many years the New York opens.
Generally when one or more market trades or use currency actively for open business the liquidity of currencies increased. In the below image you can see different time zones forex sessions.
Figure No – 1
Figure No – 2
This image shows only the major markets of the world because it is not possible to show all the market around the world in a single image. The New York market and Canadian Market opens at the same time, and with the major European markets, the London market overlaps.
Before one hour of London market opening the Germany market opens. Therefore until the London market opens the volatility on average doesn’t see the increased mark.
The currency pair’s volatility is directly impacted by the major sessions. Hourly volatility is shown below in the charts. If you are using any trending trading strategy or your trading strategy is made based on the volatility, you should focus on the specific time of a day where the price movement of the instruments is the largest.
In the chart, spikes are the ideal time because during that specific time to increase the volatility the instruments price needs to grow higher highs or become lower lows. Explore Trading Instrument Efficiently: The 2 – 3 hour Trader.
You should trade in the sedate time if you prefer the low volatility or using multiple trading strategies. In this case, the chart shows you the decrease of hourly volatility.
All the below figures of the chart are current. Considering the subjects to change these charts provides an overall good context for the intraday volatility.
Chart – 1
The best opportunities provided at 8 to 17 GMT and the biggest moves generally providing at the 13 to 17 GMT. The traders who are looking for reduced volatility or time in a quiet range should trade between 20 and 5 GMT.
In term of the structure of hourly volatility, the USD/CHF and EUR/USD are pretty much similar, though overall in a day the USD/CHF moves less and therefore the hourly volatility overall is less by several pips.
Chart – 2, 3, 4
The NZD/USD and AUD/USD has also the pretty much similar hourly volatility, and every day both of them move the same amount roughly.
Check out the Daily Forex Statistics for the most recent update of volatility charts and other statistics of forex.
Learn the basics of forex trading likewise what it means by hours and sessions. This will help you definitely to exercise better strategy and to choose the ideal time. No matter what is the trading time frame of your trades, you must have a trading checklist and this will help you to determine the trading market environment in what you are trading. On better opportunities, this will also help you by capitalizing and filtering the trades.