A time for every purpose
“Every purpose under heaven has a time” - This statement from the bible sure holds true in Forex trading too. All things have a season and there is a time to buy and a time to sell stocks and shares too. When market trends are up, it is a good time to buy and vice versa. The best Forex trading hours can differ as trends can change within seconds and what was good earlier would be a deal gone badly, all within a matter of seconds. The trading market can be maneuvered to our advantage when there is a disparity in supply and demand.
The Forex Trading moment is open 24 hours a day Monday to Friday as the world sleeps at different time. However one cannot assume that all these hours have an equal distribution of buying and selling. This is because the market is most active during a few peak hours and then there is a period of least activity.
The four sessions
The Forex trading hours are divided into four major sessions namely the London, New York, Tokyo and Sydney sessions. This is because the Tradingmarkets in these places are situated on different time zones and sometimes these zones overlap. It is in these overlapping times that the most activity is seen in the Forex market and it proves to be the most profitable too. This is because the number of open positions for trade is maximized during these hours.
Similarly business attains its zenith at the middle of the week when the entire world continues to buy and sell. Activity wanes towards the end of the week and at the beginning due to the weekend occurring at different times all across the world. It has been found that most of the market trends begin during the London session and statistics peg the percentage of business at 34% in this session. These are the best trading hours.
