What is the Best Time of Day to Trade Forex?


When trading forex, timing can often be everything, as there will always be good times to trade and not-so-good times to trade. To ensure that you only trade at the optimum moments, the following details the best times to trade forex, along with the times when it’s well worth staying away from the market. You should also avoid trading on major holidays as well as days when global improvise adapt overcome quotes news events are breaking. Expert Forex traders might be able to Leverage the rapidly evolving world of geopolitics, but that’s a skill that you developed through years of training. You don’t want to get burned in the short-term gambling the wrong way against the trending news. Forex is an over-the-counter market, where currencies are traded during Forex trading sessions.

When should you not trade?

  • When you have to think about the trade.
  • When you don't know where your stop goes.
  • If the market does not favor your system.
  • When you want to “catch up”
  • When you think that markets are “too high” or “too low”

Our platforms’ simple user interface allows beginners to easily begin their investment journey and continue trading efficiently. Not only is everything neatly aligned and just a click away, but you can also install our trading applications to access your trades from anywhere. Continue reading our day trading vs forex guide to see which of these suit your investment needs and how you can begin trading with CAPEX today.

Is Forex Trading At Night Profitable?

Given that certain blue-chip stocks are known for their stability within the stock market, traders are more likely to open positions with a potential for profit in the long-term. Therefore, as they are not looking for short-term price fluctuations, a volatile market would not work for their trading strategy. Trading hours differ between the forex market and the stock market. The forex market is open 24 hours a day, 5 days a week, due to the overlap between time zones. On the other hand, there is a set daily timetable for stock market trading hours​​, depending on the specific region and exchange.

best day to trade forex

Forex is inherently dependent on the currencies of different countries that, in turn, also have their own respective time zones. London is considered the largest forex market in the world, with 43% of global trading happening in the region. It also heavily impacts currency fluctuations since the Bank of England, which assigns interest rates and manages the GBP policy, expert blog: software development articles is headquartered in the city. Instead, currencies are bought and sold in major financial centres around the world, called Forex trading sessions. To determine the best time of day to place trades on the Forex market, you need to be aware of how the market operates. Knowing the best times of the day to trade on the Forex markets can be crucial to your trading success.


It is essential that you learn to focus and narrow your view on the news releases that are relevant to you, as opposed to those that will just serve as distractions. While it is true that the spot market is open 24/5, the futures market is linked to physical exchange centers. More specifically, it is tied to the Chicago Mercantile Exchange and a web of others throughout the U.S. and abroad. The more experience you acquire, the easier it will be to narrow down the best trading window for you. All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team.

best day to trade forex

Similarly, you should also look at the best possible way of exiting a position. You can do this with ease when deploying a stop-loss and take-profit order – which we discussed earlier in this guide. Ultimately, if EUR/USD does hit a price of 1.2318, your stop-loss order will be triggered and thus – the trade will be closed automatically. ​​ page to explore over 8,000 shares and 1,000 ETFs available to trade on our platform now. In addition, Canada is one of the most endowed countries in terms of natural resources. A combination of all these factors make the pair one of the most liquid in the world.

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This means that the broker will execute your position instantly at the next best available price. However, this isn’t the most effective way of entering a forex trade. When you invest in a traditional asset like stocks or mutual funds – you are riding all of your hopes on the markets increasing in value. This is unconducive for short-term day traders, as the only way you can make money is if the price movement of the asset rises. With this in mind, the best time to trade forex is during standard market hours – which runs from 5 p.m. This takes into account the global nature of the forex trading arena, with the Asian markets opening proceedings and the week closing in the US.

  • When only one market is open, currency pairs tend to get locked in a tight pip spread of roughly 30 pips of movement.
  • To determine the best time of day to place trades on the Forex market, you need to be aware of how the market operates.
  • There is high liquidity and volatility in the early hours during the London/New York overlap (1300hrs GMT – 1600hrs GMT), and most assets feature thin spreads.
  • When a trend is discovered, this allows you to place a suitable trade to profit from your findings.

Day trading in the forex industry refers to a specific short-term strategy that focuses on small but frequent gains. The general rule of thumb is that when you open a position – you will close it within a few hours. In some cases, your forex day trading order might remain open for just a few minutes. Leverage in trading is definitely something to consider when weighing up the forex market against the stock market, also known as margin trading​​. Opening a spread betting or CFD trading account allows traders to place a small percentage of the full trade value, which is known as a deposit. This allows traders better exposure for trading both stocks and forex, as they have the opportunity to magnify their profits.

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The early morning sessions can be exciting and action-packed, but that energy is going to quickly fade away as people jump into an early weekend. Tuesday, Wednesday, and Thursday are the best rates to trade Forex because they are the days that see the what is the purchasing managers’ index most action. The My Trading Skills Community is a social network, charting package and information hub for traders. Access to the Community is free for active students taking a paid for course or via a monthly subscription for those that are not.

  • We are looking to optimize our trading strategy to include a good general principle of when to trade regardless of these sessions.
  • You can observe the dollar index reversing its trend direction on a weekly chart below.
  • If your goal is to make small, frequent profits from price movements using short-term strategies, then yes, forex is more profitable than stocks.
  • This trading approach advises you to open and close all trades within a single day.

Furthermore, the spread itself on major currency pairs has never been more attractive – even for casual traders. For example, the best platforms in this space offer commission-free trading at a spread of less than 1 pip. The liquid major pair in the forex market is EUR/USD – which will see you trade the exchange rate between the euro and US dollar. All of the aforementioned pairs have a number of core characteristics that are highly suited for newbie traders. Irrespective of whether you are a complete novice or a seasoned forex trader – demo accounts are one of the best tools you can have by your side.

Scheduled events e.g. economic statistics, interest rates, GDPs, elections etc., tend to have a strong impact on the market. The biggest foreign exchange forex across the globe are New York, Tokyo, London, and Sydney, which results in the markets being open 24 hours a day. The foreign exchange market is an OTC or over-the-counter market – it functions without a centralized exchange. Instead, the forex market exists through a global web of brokers, market makers, and banks. Trading forex with a reputable broker is of the utmost importance when it comes to the forex market.

By now, you have identified a time frame, the desired position size on a single trade, and the approximate number of trades you are looking to open over a certain period of time. Below, we share three popular Forex trading strategies that have proven to be successful. In order to make profit, traders should focus on eliminating the losing trades and achieving more winning ones. Any trading strategy that leads you towards this goal could prove to be the winning one.

It wasn’t until after some time that I began to see some patterns emerge in my trading results that I sort of figured it out myself that some days of the week are better to trade than others. The strategy uses technical analysis, such as moving averages, to catch assets whose recent performance has differed considerably from their historical average. Mean reversion traders will then take advantage of the return back to their normal trajectory. Trend traders attempt to make money by studying the direction of asset prices, and then buying or selling depending on which direction the trend is taking. Ever wondered if you could make better Forex trades simply by picking the right day of the week? Some news updates to monitor include those that involve CPI data, central bank meetings, gross domestic product data, unemployment rates, and trade deficits.

They attempt to spot these reversals ahead of time, and trade to make profits from smaller market movements. The continental currency of the European Union needs no introduction, and everyone knows the power that is shared between the US Dollar and the European Euro. Once again, this pair can also be traded at any given hour without risk. However, this pair is unique in the fact that it has two separate volatility surges during the day.

  • So, if you’re ever stuck, you can simply get in touch, and our support team will resolve your issue.
  • This is due to their historical volume, volatility and the large number of educational resources that are available to both forex traders and share traders.
  • The Japanese government places a high premium on keeping the value of the yen low to cultivate a competitive export market.
  • This approach is completely opposite of holding a position for hours, days, or even weeks.

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