The foreign exchange market, more often known as Forex, is the largest decentralised market in the world. The fact that foreign currency markets are accessible for trade all day, every working day of the week, and throughout the whole year is perhaps the most advantageous feature of these markets. However, in accordance with the manner in which you trade, you need to choose the most favourable market conditions, such as those in which there is a high number of transactions taking place.
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The EUR/USD the most volatile forex pair
The EUR/USD currency combination is the most volatile pair in the forex market since both nations are the preeminent economic powers in the globe—the Eurozone and the US. More than half of the overall market volume in foreign exchange is held by this pair. Because of this, if you are able to trade this pair at the optimal hours of the forex market, you will most certainly have odds stacked in your favour in terms of liquidity which day traders loves the most and it adds more pips to their profit.
The other time that day traders must watch closely is the news announcements and they usually take place when the big sessions overlaps. The economic news annoucement hours are the most important hours of trading as markets tends to over react and that creates opportunities for traders and investors.
One of the most actively traded currency combinations in the world is the Euro to US Dollar. Even if this is the finest pair to trade for all different types of traders to achieve a big return, it does not imply that trading EURUSD is ideal throughout the whole week. In this section, we will examine the hours of the currency market that are optimal for trading EURUSD.
Key Takeaways For Forex Market Trading Hours
- The foreign exchange market is open nonstop from Sunday evening at nine o’clock GMT through Friday evening at ten o’clock GMT.
- The trading hours of the world’s four most important foreign currency markets—London, New York, Sydney, and Tokyo—are each different.
- The optimum time to trade EURUSD is during the overlap between the trading sessions in London and New York, which occurs between 12 PM and 4 PM GMT (1 pm to 5 pm UTC).
- The EUR/USD pair has a great deal of volatility at the times when the forex markets are open simultaneously.
- When there is just one trading session active, you should avoid trading at that time.
Forex Market Opening Hours
The foreign exchange market is open around the clock every day of the week with the exception of major holidays. The foreign exchange market is available for trading from Sunday evening at nine o’clock GMT through Friday evening at ten o’clock GMT. The market is always open, but not for just one session at a time but rather for four sessions in a row. This schedule varies according to the place in the world.
The following are the opening hours: GMT Zone
- New York from noon to nine o’clock (1 pm to 10 pm UTC)
- London 7 am to 4 pm (8 am to 5 pm UTC)
- Tokyo 11 night to 8 am (12 am to 9 am UTC)
- Sydney, Australia, from 9 night to 6 am (10 pm to 7 am UTC)
When is the Best Time To Trade The EURUSD Pair?
Even if the market is open around the clock, does this suggest that there is a certain time of day that is better for trading and making a profit? Without a doubt, NO. Let’s take a look at the hours of the forex market that are optimal for trading.
The overlap of the trading sessions in London and New York is the most profitable period to trade the EURUSD. The time now is noon until four o’clock GMT (1 pm to 5 pm UTC). During this period, the EURUSD causes a large deal of volatility, and if you take advantage of it, you may make some substantial gains. In addition, both the spread and the commission are kept at the lowest possible levels.
It is best to avoid trading at times when there is only one market session available since the volume of transactions will be extremely low and the market will not be turbulent enough to earn any profits.
How to Trade EURUSD Pair?
When trading EUR/USD, it is important to bear in mind the following three basic trading strategies:
- Scalp trading: Because this currency pair is very volatile, scalp trading is the most effective strategy to generate a rapid profit while minimising risk. The average time that scalpers stay in a deal is anything from a few seconds to a few minutes.
- When day trading, you should hold onto your positions throughout the most volatile parts of the trading day.
- Swing Traders: These investors search for certain weekly or monthly trends to capitalise on in order to generate a profit.