Technically speaking, Forex works 24 hours a day, 5 days a week, and you can choose any time you want to make deals. However, some market hours are more valuable than others, and learning those time intervals may be crucial for your financial outcome as a Forex trader. In this article, we’re going to explain when you should come to the UK market and how to make the most of those special hours.
Choosing the best trading time
The best market hours largely depend on the location. For example, if we’re talking about the UK, one of the most valuable markets for that location is London, which accounts for more than 40% of global trading. London is extremely influential when it comes to currency exchange rates and other policies, and we should definitely take into account when that market is active: from 3 a.m. till noon.
Many trends of the Forex market seem to originate in London, but that’s not the only important market we should keep an eye on. Basically, the trick is to determine those valuable markets and look for the overlaps in their market hours. The logic behind this method is quite simple: such overlaps make price ranges larger, allowing you to earn much more if you’re lucky enough. Let’s take a closer look at those valuable markets.
When it comes to the UK, probably the most important time is when the London market overlaps with the US market. Many traders consider the time between 8 a.m. and noon simply the best time to trade Forex in UK, and that’s quite true: about 70% of all deals are closed in these hours. The major reason for this surge in trading is obvious: USD and EUR are the most popular currencies to trade. And you can always join the majority of traders to make your own profit.
However, the US market is not the only one. Another great opportunity for trading arises when London overlaps with Tokyo: from 3 a.m. to 4 a.m. While the Tokyo market is smaller than the US one, and the overlap lasts just for an hour, a Forex trader may always use this time to make great deals. Basically, you can make much more by trading only in those 5 hours every day instead of monitoring the market all the time.
And if that’s too little time for you, there are minor options, too. For example, you can try and catch the time between 5 a.m. and 6 a.m. That’s when most of the deals on the Singapore and Sydney markets are made. Still, the overlap between London and New York is potentially much more profitable.