Best Times To Trade Fx Online

Forex is a highly volatile market with huge price fluctuations happening every moment. Open twenty four hours of day, it is this characteristic of the market, which allows traders to enter the market any time of the day. But if you want to zero in on the best trades to profit from, you must enter the market at the best fx trading times. But what are the best times to trade fx? Well, read on to find the answer.

Before we look into the matter, it is important to get well familiar with the main characteristics of the fx trading market:

• Fx is 24 hour market, starting from Sunday 5pm EST through Friday 4pm EST. • Fx Trading starts in New Zealand, followed by Australia, Asia, the Middle East, Europe, and America
• The US & UK are responsible for more than 50% of the market transactions
• The major Fx markets are- London, New York, Tokyo
• Nearly two-thirds of NY Fx activity occurs in the early morning hours while European markets are still open
• Fx Trading activity is at its peak when major markets overlap.

Generally speaking, the best time to trade fx online is when the activity and the volume of transactions, is the highest. As one fx market closes, another market opens. With business hours overlapping, the fx transactions continue as day becomes night and night becomes day. Somebody somewhere in the world is buying and selling currencies at any given time. But which are the best fx trading times?

It has been observed that the Fx market volume of transactions remains high during the whole day, but peaks to the highest when the Asian market, including Australia & New Zealand, the European market and the U.S. market are all open simultaneously. So these are the fx trading hours you must target, if you want to cash in on the highest possible amount of profitable trades.

Another way to determine the best time to trade fx online for a given pair is to know the optimal trading hours within those days which are more likely to produce trends for that currency pair. Go through the hourly data for hundreds of trends. Analyze the trend data and you will be able to determine not only which fx trading times consistently produced trends on a given day, but also which fx trading hours of the day were they most active.

This is the breakdown of fx market times for your reference:

* New York Market trade times: 8am-4pm EST
* London Market trade times: 2am-12Noon EST
* Great Britain Market trade times: 3am-11am EST
* Tokyo Market trade times: 8pm-4am EST
* Australia Market trade times: 7pm-3am ES

Now take a look for the best times to trade fx for the following currency pairs

EUR/USD

the Euro only trades 15% of all volume during the Tokyo session. Hence start watching the Euro late in the Tokyo session, as it trades 39% of all Forex volume during the London session. It can also be traded during the New York session.

GBP/USD

Trading extremely lightly during the Tokyo session. Start watching for the pound near the end of the Tokyo session as it can start moving then. In the London session, GBP/USD accounts for approximately 23% of all Forex trading volume. The pound can be traded in the New York session also.

USD/JPY

USD/JPY accounts for approximately 78% of all Forex volume during the Tokyo session. Dropping to about 17% during the London session, there are occasional days when these 3 pairs make significant price moves outside the sessions, having the most trading volume.