There are different times of the week that are considered the best for Forex trading. The first trading day of the week is generally considered to be the best, but later sessions are also excellent times to trade. During the overlap between the New York and London trading sessions, trading volume is at its highest. As a result, Monday and Tuesday are considered to be the worst trading days, but traders can still benefit from this time of day.
For the best forex trading times, you should trade in the main session, which is when the New York Stock Exchange opens. However, the same logic can also be applied to traders in different time zones, as long as you know when the New York Stock Exchange opens and closes in your time zone. Also, make sure that you are aware of when EUR, GBP, and CHF news drivers occur so you can time your trade entries accordingly.
Major financial centres have large concentrations of banks and financial institutions, which means that these cities tend to see the highest trading volume. For instance, the GBP/USD pair is most active during the overlap between the New York and London sessions. The London session is also a time when European currency trading takes place.
The best forex trading times are when the markets are open. Most currency pairs move higher during the overlap between the New York and London sessions, while JPY moves the least. Most traders aim to trade during these times, when the price of currencies is the highest and the trading spreads are narrowest. Those times will be more volatile, which means better opportunities for investors.
The London session is the most active, with almost 37% of all forex trades taking place. The session opens at 8:00 AM (Nigerian time) and closes at 4:30 pm (London time). It’s best to trade at these times because the currency markets open for trading. The opening session is also a good time to take advantage of trends and profit potential.
During the London and New York trading sessions, the best time for Nigerian forex trading is between 2 pm and 6:00 pm, Nigerian time. This is because the two biggest trading sessions on the planet overlap for 4 hours, making this time window of opportunity. The selling price differential is at an all-time low, and many trade-able patterns form during this time.
If you have a full-time job, it might be difficult to monitor the forex market live. However, if you can work flexibly during the evening and on weekends, you should consider trading during these times. However, if you are in Kenya, you may find that the best time to trade is from 8:30 AM to 17:00 PM KEN Time (GMT+3)
If you’re a beginner to foreign exchange trading, a 4-hour window is the best time to enter the market. This period tends to be the most active and liquid, and the opportunity for profitable trades is higher. However, when trading for long periods, you might want to take advantage of the broader range of trading time.