The forex market is one of the most lucrative financial markets in the world, with trillions of dollars being traded every day. The market is open 24 hours a day, five days a week, which means that traders have the opportunity to trade currencies at any time they choose. However, not all forex currencies are created equal, and some are better to trade at certain times than others.
To understand which forex currencies are best to trade at which time, it is essential to understand the different forex 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 of these sessions has its unique characteristics, and traders should consider these when deciding which currencies to trade.
The Sydney session is the first session of the day, and it opens at 5 pm EST and closes at 2 am EST. During this session, the Australian and New Zealand currencies, also known as the Aussie and Kiwi, are the most actively traded. These currencies are popular among traders due to their high interest rates and their correlation with commodities such as gold and copper.
The Tokyo session is the next session to open, and it runs from 7 pm EST to 4 am EST. During this session, the Japanese yen is the most actively traded currency, followed by the Australian and New Zealand dollars. The yen is a popular currency among traders due to its safe-haven status, which means that it tends to strengthen during times of market uncertainty.
The London session is often considered the most important session of the day, as it overlaps with the Tokyo and New York sessions. It opens at 3 am EST and closes at 12 pm EST. During this session, the British pound, the euro, and the Swiss franc are the most actively traded currencies. The pound and the euro are popular due to their high trading volume and their correlation with global economic events.
The New York session is the final session of the day, and it runs from 8 am EST to 5 pm EST. During this session, the US dollar is the most actively traded currency, followed by the euro, the pound, and the Japanese yen. The US dollar is the most traded currency in the world, and it is popular among traders due to its correlation with global economic events and its status as the world’s reserve currency.
In summary, the best forex currencies to trade at different times depend on the forex session. During the Sydney session, the Aussie and Kiwi are the most actively traded currencies, while the Japanese yen is the most traded during the Tokyo session. The London session is dominated by the pound, the euro, and the Swiss franc, while the New York session is all about the US dollar. By understanding the characteristics of each session and the currencies that are most actively traded during those times, traders can make more informed trading decisions and maximize their profits.
