When to Trade?
Now that you know the meaning of forex, its advantages and how to do the trading, it’s about time you know when to trade. Eventhough the forex market is open 24 hours a day, it doesn’t mean that it’s always active the whole day.
Whenever the market moves up, you can make money trading, and you can even make money when the market moves down. But it will be very difficult for you to try to make money when the market doesn’t move at all.
Before looking at the best times to trade, we must look at what a 24-hour day in the forex world looks like.
The forex market can be broken up into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session which is the favorite time to trade of Pipcrawler.
Summer
| Time Zone | EDT | GMT |
|---|---|---|
| Sydney Open Sydney Close | 6:00 PM 3:00 AM | 10:00 PM 7:00 AM |
| Tokyo Open Tokyo Close | 7:00 PM 4:00 AM | 11:00 PM 8:00 AM |
| London Open London Close | 3:00 AM 12:00 PM | 8:00 AM 5:00 PM |
| New York Open New York Close | 8:00 AM 5:00 PM | 12:00 PM 9:00 PM |
Winter
| Time Zone | EDT | GMT |
|---|---|---|
| Sydney Open Sydney Close | 4:00 PM 1:00 AM | 9:00 PM 6:00 AM |
| Tokyo Open Tokyo Close | 6:00 PM 3:00 AM | 11:00 PM 8:00 AM |
| London Open London Close | 3:00 AM 12:00 PM | 7:00 AM 4:00 PM |
| New York Open New York Close | 8:00 AM 5:00 PM | 1:00 PM 10:00 PM |
You will notice that there is a period of time where two sessions are open at the same time. Obviously, these are the busiest times during the trading day because there is more volume when two markets are open at the same time. This makes sense because during those times, all the market participants are wheeling and dealing, which means that more money is transferring hands.