At the very beginning of work on Forex, along with training, a novice trader needs to decide on a time interval. First of all, the optimal forex trading time depends on the chosen strategy. It will be aggressive trading (scalping), intraday trading online or using pending orders, this will determine the trader himself. But before that, a newcomer to the Forex market should know what kind of trading sessions there are and how currency pairs behave at different times of the day.
Forex Trading Time
On the Internet portals it is very often possible to see that the analyst or the news is released according to GMT GMT . This is a standard value and the start of trading is tied to this particular time. But in order not to get confused in the Forex broker terminal in the column “the beginning of trading sessions” there is a function where the trader indicates the time of his time zone (Fig. 1). For example, in Moscow time is GMT + 3, which means that if the trading session in London opens according to their local time at 8:00, then Moscow time is GMT + 3, that is, 8 + 3 = 11 hours of the day, and so on. This is clearly seen in the figure below. The trader must determine for himself what time he will trade, GMT, Moscow time or local time, depending on his personal wishes. What you need to know the beginning of the time of trading on Forex, depending on the trading session, is described below.
Fig.1. The time of the beginning and end of trading on Forex on world trading platforms
There are four trading sessions in Forex and they are called depending on their geographical location. This is the Pacific trading session , where the main trading platforms in Wellington (New Zealand) and Sydney (Australia). Further Asian session – Tokyo, Hong Kong, Singapore. Then the European Session (Zurich, Paris, London) and the American (New York, Chicago). The start time of each session can be seen in the schedule that most Forex brokers have. Trade starts at 00:01 Moscow time (local time began at 22:00), on Monday in the Pacific trading session. Ends at 01:00 AM. Saturday with the closing of trading on the trading floors of Chicago.
Fig. 2. Intersection of trading sessions
Movement of the currency pair depending on the session
To begin, the trader must understand that the end of one session does not mean the beginning of the second. Forex trading sessions overlap in time (overlap each other) and it is at this time that market volatility increases.
Time low and medium volatility
In the Pacific session, the movement of currency pairs is almost minimal. The intensity of movement of the main currency pairs EUR / USD, GBP / USD, USD / JPY at this time is close to zero (low volatility ). Mostly trade is conducted in the New Zealand and Australian dollars, since it is at this time that economic news is issued for these countries. Further, at night in Moscow, trade begins at the sites in Tokyo, Singapore, Hong Kong (Asian session). These are fairly large trading floors and there are quite large players on the foreign exchange market. Forex trading time in the range from 03:00 to 06:00 MSK is characterized by the movement of average volatility. If someone is trading USD / JPY, it is at this time in Japan that important economic news is coming out that determines the movement of this pair.
Best Forex time for intraday trading
When the European session begins, but the Asian session has not ended yet, on Forex there is an increased volatility of 10:00 – 12 (13): 00 by MSK. This is also due to the fact that at the start of trading in Europe, important economic news is coming out in the Eurozone. After the release of this news market awaits the opening of trading in the United States. The intersection of the European session and the North American is considered the best time for traders who trade according to the scalping strategy, as well as for those who trade the main currency pairs EUR / USD, GBP / USD, USD / JPY. This is from 3:00 pm (the opening of trading in New York) to 19 (20): 00, when trading floors in continental Europe and London are closing. After the closure of Europe, the intensity of trading decreases, and after the closure of Chicago, the intensity almost disappears.