Forex Market Hours – When is the Most Profitable Time to Trade?

 

One of the most beautiful aspects of the forex market is that it is open 24 hours a day. I found the forex more than 7 years ago when I was learning how to trade stocks. The problem was that the stock market was open when I was at work so I really could not stay up to date with the latest developments. That is when I came across the foreign exchange, and I have not looked back since.

But since the forex is open 24 hours a day, people often get confused about the forex market hours. When is the most profitable time to trade? When can you make the most money? Questions like that are just normal, so let’s take a look at the answers.

Here are the basic forex trading times. They are categorized by the region of the world that is open for business.

European (London) session – 3 AM – 12 PM (Eastern)
U.S. (New York) session – 8 AM – 5 PM (Eastern)
Asian (Tokyo) session – 7 PM – 4AM (Eastern)

Now as you can see, there are actually overlaps during these periods. These overlaps are when two regions of the world are actively trading the currency markets. There is a great deal of volatility and movement in the foreign exchange during these times which makes it ripe for the large, extended moves that the forex is famous for.

So clearly, if you know what you are doing, trading when these sessions overlap is a great time to trade. But I don’t think you can really answer the question of when is the most profitable time to trade the forex. Why? Because trading is not based on time, it is based on opening and closing profitable trades. And if you have any experience in the currency markets at all, you know that absolutely massive moves can happen at any time.

And so what if the market is quiet? Does that mean that money can’t be made? Absolutely not! People make a really good living trading only during the slowest times of the market. And I have personally sat during the most active market periods and not found one good trade.

So what is the answer? The simple answer that I found is that I needed some help. Someone or something that could watch the market and alert me when a profitable trade setup was available.

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