Forex trading, also known as foreign exchange trading, is a global market where currencies are bought and sold 24 hours a day, 5 days a week. As such, the forex market is always open, and traders can trade at any time of the day or night. However, not all currency pairs are traded equally throughout the day. Some currency pairs are more active during certain times of the day than others. In this article, we will explore what time of the day each currency pair is traded the most in forex.
Before we dive into the specifics of each currency pair, it is important to understand the concept of trading sessions. The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its own unique characteristics in terms of trading volume, liquidity, and volatility.
1. EUR/USD
The EUR/USD currency pair is the most traded pair in the forex market, accounting for approximately 30% of all forex trades. It is also one of the most liquid pairs, meaning that it is easy to buy and sell without affecting the price. The EUR/USD is most active during the London and New York sessions, which overlap from 8:00 am to 12:00 pm EST. During this time, traders can expect high trading volume and volatility, making it a great time to trade this pair.
2. USD/JPY
The USD/JPY currency pair is another popular pair in the forex market, accounting for approximately 13% of all forex trades. It is also one of the most liquid pairs, meaning that it is easy to buy and sell without affecting the price. The USD/JPY is most active during the Tokyo and New York sessions, which overlap from 7:00 pm to 12:00 am EST. During this time, traders can expect high trading volume and volatility, making it a great time to trade this pair.
3. GBP/USD
The GBP/USD currency pair is the third most traded pair in the forex market, accounting for approximately 9% of all forex trades. It is also one of the most liquid pairs, meaning that it is easy to buy and sell without affecting the price. The GBP/USD is most active during the London and New York sessions, which overlap from 8:00 am to 12:00 pm EST. During this time, traders can expect high trading volume and volatility, making it a great time to trade this pair.
4. AUD/USD
The AUD/USD currency pair is the fourth most traded pair in the forex market, accounting for approximately 7% of all forex trades. It is also one of the most liquid pairs, meaning that it is easy to buy and sell without affecting the price. The AUD/USD is most active during the Sydney and Tokyo sessions, which overlap from 7:00 pm to 2:00 am EST. During this time, traders can expect high trading volume and volatility, making it a great time to trade this pair.
5. USD/CAD
The USD/CAD currency pair is the fifth most traded pair in the forex market, accounting for approximately 5% of all forex trades. It is also one of the most liquid pairs, meaning that it is easy to buy and sell without affecting the price. The USD/CAD is most active during the New York session, which runs from 8:00 am to 5:00 pm EST. During this time, traders can expect high trading volume and volatility, making it a great time to trade this pair.
In conclusion, each currency pair has its own unique characteristics in terms of trading volume, liquidity, and volatility. Traders should be aware of these characteristics and trade accordingly. By understanding what time of the day each currency pair is traded the most, traders can maximize their trading opportunities and potentially increase their profits.
