When to Trade: The best time to trade the Forex market is when markets overlap. The US and London markets are open at roughly the same time, and more than 70% of all trades are made during this time. This is the time to trade the US dollar and the Euro, two of the most popular currencies in the Forex market. Overlapping markets create larger price ranges and therefore higher trading opportunities.
The London session is the highest trading activity during the day, with high liquidity and volatility. This is the time when trends often start, and this can be extended to the New York session. The trading volume will decrease during the mid-day lunch break, as traders wait for the US session to open. It is during this time that important news regarding the Eurozone is released, which will greatly influence price movements.
In addition to the main trading sessions, the Forex market is also open 24 hours a day. However, this does not mean that trading during these times is necessarily the best option. Rather, it is important to choose a trading time that suits your schedule. By choosing the right time, you can maximize your profits while minimizing risk.
Forex trading hours are also affected by Daylight Saving Time, which lasts from March to November. You can check with brokers and banks for the date and time of DST. In addition to the US, other big exporters of commodities and services like Japan and China conduct transactions in the Forex market.