Best Time to Trade Forex: How Major Banks’ Activity Drives Market Volatility and Influences Your Trading Success
Today we would like to introduce you to the best times to trade in the Forex market so that you can make more profits in the market. The Forex market has more liquidity and volatility in these sessions and times. The best time to trade is when important banks in big countries are open, for example, when banks in USA, England and Germany are open, it is a very good time to trade because liquidity and market volatility increase. The banks create a strong trend and movement in the Forex market.
Forex trading sessions
In Forex trading, the market is divided into trading sessions during which major banks and financial institutions operate actively.
Forex trading sessions are :
New York / America
London / Europe
Berlin / Europe
Sydney / Australia
Tokyo / Asia
What time and session does the Forex market have the most liquidity and volatility?
The strongest movements in the Forex market occur at the beginning of the New York session opening. At this time, liquidity is very high and market movements are very powerful and volatile. If you are interested in exciting trades, you can start trading during the New York session. Typically, the early hours of the New York session see the strongest movements in the market, this session has very high liquidity.
After the New York session is the London and Berlin sessions in terms of liquidity and volatility, followed by the Tokyo or Asian session, and finally the Sydney or Australian session. The Sydney session has very low volatility and there is not much liquidity at that time.
Today we would like to introduce you to a very good website that shows you the opening hours of trading sessions and banks.
The photo by forex market time converter website
In the table above you can see Forex trading sessions, where you can see the hours of economic activity and the hours of operation of major banks in that country and city. If a country’s trading session is green in the session table, it means that the country’s banks are open, and if it is red, it means that the country’s banks are closed.
The best time to trade is when more than one trading session is open. For example, when the European and US markets are open at the same time. We recommend you to trade in London, New York and Berlin sessions. Because during these sessions and in the early hours of these sessions, economic activity and market liquidity are high.
We hope you have enjoyed this article