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What is the Best Possible Time to Trade

The forex market is represented as one of the largest and most active financial markets in the world, especially known for its round-the-clock trading.

Forex market hours are broken up into four major trading sessions which include from Sydney and Tokyo to London and New York. These are estimated to be the largest trading centres, accounting for nearly one third of the daily forex trading volume. The market is open from 10pm (UTC) on Sunday – when the Sydney session starts – to 10pm on Friday when the New York session closes for the weekend.

At any point of time, there’s always one forex session open although there are periods of downtime, usually in the evening between 7 and 10pm. The time when New York is winding down before Sydney starts.

So, when is the right time to start your trades? The optimal time to trade the forex market is when it’s at its most active levels. That’s when trading spreads (the differences between bid prices and ask prices) tend to narrow. In those situations, less money goes to the market makers facilitating currency trades, which leaves more money for the traders to possibly pocket.

While each exchange functions independently, they all trade the same currencies. Therefore, when two exchanges are open, the number of traders actively buying and selling a given currency greatly increases. The bids and asks in one forex market exchange immediately impact bids and asks on all other open exchanges.

Risk Warning

 This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. Trust Capital TC Ltd does not take into account your personal investment objectives or financial situation. Trust Capital TC Ltd makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of Trust Capital TC Ltd, a third party or otherwise.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.78% 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. Trust Capital TC does not offer Contracts for Difference to residents of certain jurisdictions including the USA, Iran, and North Korea. Please consider our “Risk Disclosure“.

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