Lesson 3: Forex Market Hours and Best Times to Trade Forex
So, we have learnt that you can trade Forex anytime time of the day or night during the week. There are times when liquidity and volume is higher and these are the best times to trade. In this lesson, we look at best trading times in South Africa.
There are 4 main Forex trading sessions with opening/closing hours based on the biggest financial centers around the globe. The Sydney session, the Tokyo session, the London session, and the New York session.
When is the Best time to trade Forex in South Africa?
In simple terms, the best time to trade is when there are more active traders. This happens when different market hours overlap and offers higher volume and volatility. With more trade volume currencies move quicker and most important economic news will be announced or published during this period. The hot zones for Forex Trading in South Africa are:
- When Tokyo and London’s markets overlap (between 9am and 10am South African time);
- And when London and New York’s markets overlap (between 3pm and 7pm South African time)
** Please keep in mind that in the UK the clocks go forward 1 hour at 1am on the last Sunday in March, and back 1 hour at 2am on the last Sunday in October. This means a 1-hour time difference between SA and the UK from March and a 2-hour time difference during from October.
In this graph, you can see how there are much larger pip movements for specific currency pairs during the main, overlapping trading sessions.
If you’re looking for the best times to trade forex in SA, concentrate on the times when the markets overlap. Needless to say, you can always find trading opportunities during any time of the day.
In Lesson #3 of your Forex trading course you will learn the different types of Forex trading styles.