Forex trading is a lucrative business that is open 24/7, but not all currency pairs are best traded at the same time. Trading at the wrong time can lead to losses, while trading at the right time can lead to profitable trades. In this article, we will explore the best forex to trade at what times.
Firstly, it is important to note that the forex market is divided into three major trading sessions: the Asian, European, and North American sessions. Each session has its own characteristics and unique features that affect currency pairs differently.
The Asian session runs from 10 pm to 8 am GMT and is known for its low volatility. During this time, the major currency pairs such as EUR/USD, GBP/USD, and USD/JPY tend to have low trading volumes and narrow price movements. It is not an ideal time for traders who prefer high volatility and large price movements.
However, the Asian session can be a good time for traders who prefer to trade exotic currency pairs such as USD/SGD, USD/HKD, and USD/THB. These pairs tend to have higher volatility during this session, providing traders with more trading opportunities.
The European session runs from 7 am to 4 pm GMT and is considered the most active trading session. During this time, the major currency pairs tend to have high trading volumes and large price movements. It is the best time for day traders who prefer to take advantage of short-term price movements.
The most traded currency pairs during the European session include EUR/USD, GBP/USD, and USD/CHF. Traders who prefer to trade the cross-currency pairs such as EUR/JPY, GBP/JPY, and EUR/GBP can also find good trading opportunities during this session.
Lastly, the North American session runs from 12 pm to 9 pm GMT and is known for its high volatility. During this time, the major currency pairs tend to have large price movements, making it an ideal time for swing traders who prefer to hold positions for a few days.
The most traded currency pairs during the North American session include USD/CAD, USD/JPY, and EUR/USD. Traders who prefer to trade commodity currencies such as AUD/USD, NZD/USD, and USD/CAD can also find good trading opportunities during this session.
In conclusion, the best forex to trade at what times depends on the trader’s trading style and preferences. Traders who prefer low volatility can trade during the Asian session, while day traders can take advantage of the high volatility during the European session. Swing traders can find good trading opportunities during the North American session.
It is important to note that these time frames are not set in stone and can vary depending on market conditions such as news releases and economic data. Traders should always keep an eye on the market and adjust their trading strategies accordingly.
In addition, traders should also consider the time zone they are in when trading forex. Traders in Asia may find it difficult to trade during the European and North American sessions due to the time difference. Therefore, they may need to adjust their trading schedules to suit their time zone.
Overall, the best forex to trade at what times depends on the trader’s trading style, preferences, and market conditions. By understanding the characteristics of each trading session, traders can make informed trading decisions and increase their chances of profitability.
