Best time to trade forex gmt

Foreign best time to trade forex gmt strategies and tips for upcoming pros. Knowing the best market hours is pretty critical for successful trading.

In this article we will learn what are the best market hours of the day for trading, which day of the week is the most productive and which trading sessions are considered to have the most potential. Foreign exchange is a global market where trades are made from different time zones all over the world so the market is open 24 hours a day giving traders the freedom to choose when to work. But is it active and profitable all the 24 hours? Currency rates are hugely influenced by the demand and supply of currencies, thus the biggest rate fluctuations occur when the volume of trades is the highest. Each of these sessions is 9 hours long and these are the times when the majority of trading happen.

GMT is 4 or 5 hours ahead of the U. Eastern time as there is no daylight shift used in GMT. London which is considered to be the capital of currency trading. Second most important and active market is New York and then comes Tokyo. London and New York Session Let’s have a look at how the trading session times overlap in Figure 3.

Many professional traders consider 14:00 GMT to be the finest time as London is preparing to close and traders are getting ready to move to New York’s market. This creates big swings in the currency prices thus opening greater opportunities for profits. The opening of the London’s session is also very active and productive as it overlaps with the ending of Tokyo’s session. NY this time is pretty quiet as it is late evening or night in the rest of the world. Mondays usually start slower as the news are just in the preparation, but it doesn’t mean you can’t trade on Mondays. The most active part is the middle of the week, with holidays starting earlier as Fridays are usually active only in the first part of the day. As you can see the foreign exchange workweek is quite flexible in terms of work-life balance: half of the week when you can work full throttle and the rest for a slower pace, recreation or other projects.