Best Time to Trade Forex

These two centres account for over half of all forex trades. Others, including breaking financial or economic news or abrupt shifts in trading emotion, can be difficult or impossible to foretell. No trading method is perfect, but it can help you estimate the timing of these trades with some degree of precision. London is the primary part of the United Kingdom (U.K.), which rules the global currency market.

What are the worst times to trade?

The first and last day of the week

In view of this, it is better to stay out of the market on Monday, of course, if you do not have open positions from the previous week, which you have to manage. There is Friday on the other side. The last 24 hours of a trading week are often characterized by low liquidity.

If you’re looking for liquidity, keep the bulk of your trading locked to the middle of the week. 54% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FP Markets vs. Tickmill

Liquidity refers to how easy it is to quickly buy or sell securities for a fair price. If there is high liquidity the bid/ask spread will be tighter and you can trade more without moving the market. On the other hand, in an illiquid market the spread between the bid and ask may be very wide and not very deep. I general, liquid currency pairs are those that are active and have high trading volume. Under low liquidity markets, the currencies can become highly small or stable. Therefore, market movement comprehension would become challenging for traders.

Best Time to Trade Forex

Despite the high volume of transactions, liquidity during the session can sometimes be low, especially compared to the London and New York sessions. The Forex markets worldwide operate during different trading hours. Forex trading is the trading of different currencies to make money on changes in currencies’ values relative to one another.


Discover the range of markets and learn how they work – with IG Academy’s online course. This website is using a security service to protect itself from online attacks. The action you just performed triggered the security solution. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. It’s a good idea to avoid trading throughout the holiday season and resume it after everyone has recovered from their vacation hangover. The Bank of England regulates the GBP’s monetary system and controls interest rates and is headquartered in London.

This is when traders look for price movements that break through support or resistance levels to take advantage of the momentum. Traders buy and sell currency Best Time to Trade Forex pairs, with the goal of making a profit from the exchange rate fluctuations. Currency pairs are quoted in two prices, the bid price and the ask price.

London and Tokyo

This guide delves into the different types of market indices, why it can be beneficial to trade them as CFDs, and covers some popular index trading st… Uncover more information about stock markets by learning how to see bullish candlestick patterns, and put them to work within your technical analysis. These instances highlight the unpredictable nature of Trading Forex and the need for traders to stay informed and adaptable.

  • This brings me to a very common misconception in the Forex world – the idea that the market closes on weekends.
  • 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.
  • The currency pairs that typically have a fair amount of action are USD/JPY (or U.S. dollar vs. Japanese yen), GBP/USD (British pound vs. U.S. Dollar), and GBP/JPY (British pound vs. Japanese yen).
  • Today we share our experience to help you on your way to forex profits.
  • Generally, the countries with a growing economy, seem to attract more investors.
  • However, the three major regions are only trading for about nine hours at a time.