Forex, or the foreign exchange market, is the world’s biggest decentralized market. The best thing about trading in foreign exchange markets is that it is open 24 hours a day, every working day of the week, throughout the whole year. However, according to your trading style, you must choose the best market status, for example, when there is a lot of volume and transactions happening. The pair EURUSD is the most volatile pair in forex as both countries hold the supreme economic powers in the world. The pair holds more than half of the total market volume in forex. That is why this pair will definitely generate a great profit if you can trade it at the best forex market hours. The best forex market hours are when the major sessions overlap and there are news-times.
EURUSD is one of the most traded currency pairs worldwide. Although this is the best pair to trade for all kinds of traders to earn a good profit, that does not mean that the whole week is perfect for trading EURUSD. Here, we will look at the best forex market hours to trade EURUSD.
1. The forex market is open 24 hours a day from 9 p.m. GMT on Sunday until 10 p.m. GMT on Friday.
2. Four major foreign exchange markets in London, New York, Sydney, and Tokyo have different trading hours.
3. When London and New York sessions overlap, that is the best time to trade EURUSD; 12 pm to 4 pm GMT(1 pm to 5 pm UTC).
4. EURUSD is very volatile during the overlapping forex market hours.
5. The worst time to trade is when only one session is open.
Forex Market Opening Hours
The forex market is open all seven days a week except for the holidays. The forex market is open to executing trades from 9 p.m. GMT on Sunday until 10 p.m. GMT on Friday. Depending on the geographical location, the market is constantly open but not just in one session but four sessions consecutively.
The opening hours are:
1. New York 12 pm to 9 pm (1 pm to 10 pm UTC)
2. London 7 am to 4 pm (8 am to 5 pm UTC)
3. Tokyo 11 pm to 8 am (12 am to 9 am UTC)
4. Sydney 9 pm to 6 am (10 pm to 7 am UTC)
When is the Best Time To Trade The EURUSD Pair?
Although the market is open 24 hours a day, does that mean all the hours are optimum to trade and earn a good profit? Absolutely, NO. Let’s look at the best forex market hours to trade in.
1. When London and New York sessions overlap, that is the best time to trade EURUSD. The time is 12 pm to 4 pm GMT(1 pm to 5 pm UTC). During this time, the EURUSD creates great volatility and you can earn some significant profits from it. Furthermore, the spread and commission remain at the bare minimum.
When there is only one market session open, that’s the worst time to trade, as the transaction will be very low and the market will not be volatile enough to generate any profit.
How to Trade EURUSD Pair
There are three primary trading strategies to keep in mind while trading EURUSD:
1. Scalp trading: As this is a highly volatile currency pair, scalping is the best way to make a quick and safe profit. Scalpers usually hold their trades for a few seconds to a few minutes.
2. Day Trading: Hold the trades during the volatile hours of the day.
3. Swing Traders: Traders look for specific weekly or monthly trends to profit on.
The Impact of EURUSD Volatility
Trading sessions are the first significant part since they have a direct impact on the volatility of currency pairs. You need to be aware of periods of high and low volatility. Because the most important events affecting the EURUSD currency pair occur during the European and American trading sessions, the Asian session is often a slow time for trading in the EURUSD. The midday break for traders comes with a decrease in activity, which is followed by a rise in activity when the US session begins. Liquidity drops again when European traders close their positions at 5:00 GMT, but it may stay high because of the US trading session.