Your trading results depend on many things. One of them is the time of the day when you trade. This article is to help you build an optimal schedule for your profitable forex trades and find the best hours for trading forex in India.
What is the Best Time to Trade Forex in India
To begin with, let’s recall one of the benefits of the forex market. Unlike stocks, FX currency pairs can be traded round the clock five days a week. It basically means that you can open your laptop and place a trade at any time, night or day from Monday to Friday. But should you? Not really. Although the market is open 24/5, the profit potential isn’t the same throughout the day. The market is known for having active hours when the price of most currency pairs is highly volatile. Volatility is a measure of price change. The more dynamic the price is the better chances for high-profit speculation you get. Thus, high volatility provides plenty of opportunities for quick gains.
Read more: Is Forex Worth Investing In
The Best Time to Trade your Currency Pair
The reason behind the market’s round-the-clock availability is that the financial sectors of different countries of the world operate according to their own schedules. Because of the difference in time zones, the banks in India are closed when the banks in the US are open. Accordingly, the Indian rupee is more volatile during India’s regular working hours. Contrary, the US dollar is more volatile during the later hours of the day. On this basis, we make a conclusion that the best time for forex trading is predetermined by the instrument (currency pair) you trade. You can see the detailed schedule of major world’s financial centers and corresponding trading sessions below:
| Area | Opening Indian Standard Time (IST) | Closing Indian Standard Time (IST) |
|---|---|---|
| Wellington (Pacific session) | 03:30 am | 10:15 am |
| Sydney (Pacific session) | 5:30 am | 12:30 pm |
| Tokyo (Asian session) | 5:30 am | 2:30 pm |
| Hong-Kong and Singapore (Asian session) | 6:30 am | 2:30 pm |
| Frankfurt (European session) | 11:30 am | 7:30 pm |
| London (European session) | 12:30 pm | 8:30 pm |
| New York (North American session) | 5:30 pm | 2:30 am |
How the Success of Forex Trading Depends on Time
Let’s make it clear that trading during the most active hours will not automatically bring you profit. Furthermore, it can lead to larger losses if the strategy is flawed. The main reason to trade during the active hours is that a successful trade is likely to bring you more pips than the same trade during the “quiet” hours. Suppose you open a trade during the volatile hours and the price gains 50 pips. That outcome is practically impossible outside of those hours. Plus, high asset liquidity leads to tighter spreads and reduces transaction costs.
As a general rule, the most active trading hours take place during the overlap of two trading sessions, particularly the European and North American sessions. Since the largest volume of trades involves the US dollar either as a base or a quoted currency, the American market is highly influential on basically anything you trade. If you trade such currency pairs as EUR/USD and GBP/USD, you should consider scheduling trading between 5:30 p.m. and 8:30 p.m. This is the time when both American and European markets are active.
If you trade a currency pair that doesn’t include USD or CAD, it may be better to pay attention to other trading sessions. For example, the overlap of Tokyo and London sessions (12:30 p.m. to 2:30 p.m.) is good for trading GBP/JPY. The time when currency is exchanged in New Zealand and Japan (5:30 a.m. to 8:30 a.m.) is perfect for trading NZD/JPY. Having said that, we emphasize the importance of building a trading schedule with respect to the currency pair you trade.
Tips
- Trading forex may raise a lot of questions. This is why it is good to have someone to answer those questions any time of the day. Thus, we recommend you find a forex broker in India that provides 24/7 customer support services.
- Trading should be treated with discipline; otherwise, it is unlikely to be profitable. So regardless of the time, you choose to trade, make it regular and try not to deviate from the schedule.
Read more: Forex Trading for Beginners in 2022
Conclusions
Building a schedule according to the most active FX hours may enhance the trading results greatly. High activity in the market guarantees high liquidity of currencies as well as low spreads. This is why most traders prefer trading during the overlap of the European and North American sessions (5:30 pm and 8:30 pm). The Pacific and Asian trading sessions may be a good choice for trading local currency pairs that don’t include the US dollar.
About JustMarkets
JustMarkets is the world’s trusted broker that offers 180 popular trading instruments.
By having a trading account on JustMarkets, you benefit from advantageous conditions,
including high leverage, low spreads (from 0.0 pips),
as well as commission-free deposits and withdrawals.
And if you have any questions, there is a helpful support team working round
the clock to ensure you have the most convenient trading experience.
Try your hand at currency trading by opening a demo account on JustMarkets. It’s a quick and risk-free way to master trading in the most liquid financial market. A practice account will help you learn trading basics and develop a strategy before investing money. Start trading today to take care of your future tomorrow.
FAQ
The time you choose for trading strongly depends on a currency pair you want to trade. For example, choosing the EUR/USD currency pair, it’s recommended to trade it between 5:30 p.m. and 8:30 p.m. – American and European markets are active.
Novice traders don’t make a lot of money at the beginning, but everything starts with the practice. Consider opening a demo account for boosting your skills or a real account where it’s possible to start trading with a minimum deposit of $1.
The forex market operates 24/5 in different parts of the world – from 2:30 a.m. IST on Monday until 1:30 p.m. IST on Saturday.
You can check what market is open now following this .
Generally speaking, it takes up to 4 weeks (devoting 8-9 hours a day) to learn the theoretical part of forex trading. It’s also advisable to open a demo account (training account) – it’s a risk-free way of boosting your trading skills.
