Forex trading has become a popular way of investing money in Australia. With the advent of online trading platforms, it has become easier for investors to access the forex market. However, trading forex is not as simple as it seems. One of the important questions that arise when it comes to forex trading is what is the best time to trade forex in Australia?
Forex trading is a global market that operates 24 hours a day, five days a week. It is divided into four major trading sessions: Sydney, Tokyo, London and New York. Each trading session has its own unique characteristics, and understanding these characteristics is important to know when to trade forex in Australia.
The Sydney session starts at 5 pm and ends at 2 am AEST. This is the first trading session of the day and is known as the Asian session. The Asian session is known for its low volatility and low liquidity. This is because the major financial centres of the world, such as London and New York, are closed during this time. As a result, the Sydney session is not recommended for day traders who are looking for high volatility and liquidity.
The Tokyo session starts at 7 am and ends at 4 pm AEST. This is the second trading session of the day and is also known as the Asian session. The Japanese Yen is the third most traded currency in the world, which makes the Tokyo session important for forex traders. The Tokyo session is known for its high volatility and liquidity, which makes it a good time for day traders who are looking for opportunities to make quick profits.
The London session starts at 4 pm and ends at 1 am AEST. This is the third trading session of the day and is known as the European session. The London session is the most important trading session of the day, as it is the financial capital of the world. The European session is known for its high volatility and liquidity, which makes it a good time for day traders who are looking for opportunities to make quick profits.
The New York session starts at 10 pm and ends at 7 am AEST. This is the fourth trading session of the day and is known as the American session. The New York session is the second most important trading session of the day, as it is the financial capital of the United States. The American session is known for its high volatility and liquidity, which makes it a good time for day traders who are looking for opportunities to make quick profits.
In conclusion, the best time to trade forex in Australia depends on the trading style of the trader. For day traders who are looking for high volatility and liquidity, the Tokyo, London and New York sessions are the best times to trade. However, for traders who are looking for low volatility and liquidity, the Sydney session is the best time to trade. It is also important to remember that forex trading is a risky investment, and traders should always have a solid trading plan in place before entering the market.
