Percentage in Point

Percentage in Point

Best Time to Trade Currencies

Posted: 30 Aug 2010 10:57 AM PDT

Wish to make the most profit on trading currencies then which is the best day to do it? In share trading, the market is not open 24 hours a day and during 5 days a week, however in the case of currency trading this is true. But this doesn’t imply that the currency trading market is getting the same number of business or price movements throughout these days. There is much more activity on the currency trading markets at specific times of a day and generally speaking, the best times to trade are when the trades are busiest. We could trade 24 hours a day, 5 days a week without waiting for the right time.

Best Time to Trade Currencies

The two leading trading floors in the world for currency trading are London and the New York markets. Even though the United Kingdom does not use the euro, most European countries are within one hour time difference from the United Kingdom, as is Switzerland.  So between the US and UK sessions cover the largest part of the key currencies that are traded.

The United Kingdom session starts at 8.00 UTC and finishes at 16.00 UTC. The foreign exchanges that are primarily active during this session are the euro (EUR), British pound (GBP) and US dollar (USD) which is involved in the majority of Fx trades.

On the other hand, the US session starts at 13.00 UTC (8.00 EST) and ends at 22.00 UTC (17.00 EST). The most traded currencies during this are USD, EUR, GBP, AUD (Australian dollar), JPY (Japanese yen) and CAD (Canadian dollar).

The most active pairs during the London session are EURUSD with 39% of the trading volume, GBPUSD with 23%, USDJPY with 17%, USDCHF with 6% and USDCAD with 5%.

Sometimes volatility is low in the Tokyo session and sometimes good moves occur. The USDJPY is the most active pair with 78% of the volume followed by EURUSD with 15% and EURJPY with 5%.
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