Night Owl Traders Rejoice: Best Currency Pairs to Trade During the Night for Profitable Opportunities

By Yuliia Skorokhod

Table of Contents

Forex Night Trading: Best Currency Pairs to Trade at Night | South Africa

The Forex market works 24/5. If it never sleeps, does it have any special features during the nighttime? Yes. In this article, we explain trading nightlife and show the best currency pairs for this time. You will learn what subtleties exist in night trading and what you need to be prepared for.

Let’s start from the beginning!

What are Forex Night Trading Hours?

International currency markets operate in multiple time zones and can be easily accessed at any time. It connected with numerous banks, commercials, funds, government facilities, and of course, Forex brokers and investors.

For convenience, there are four main generally accepted time zones:

New York (North America): 1 pm to 10 pm (UTC)
Tokyo (Asia): 12 am to 9 am (UTC)
Sydney (Australia): 10 pm to 7 am (UTC)
London (Europe): 8 am to 5 pm (UTC)

Night trading begins at the close of the American (New York) trading session and ends at the opening of the European (London) session. That is, the period from 10 pm to 8 am of the next day can be considered the time of night trading.

Interesting fact: night trading was illegal until 1999.

Why Trade at Night?

You may know all that rush in day trading. Prices and markets literally go wild after the opening hours! But after the sunset, transaction volumes go slack. Traders could make profits without market hustling and high volatility. Currency relevance is more logical and predictable. Perfect time for those who prefer technical analysis.

There are no significant changes overnight, and the price of movement on the asset market does not exceed 30-50 points. Someone may find it uninteresting and even boring.

Still, night owls have their own strategy and style.

Reliability. Brokerage servers have lower loads, reducing terminal slippages and malfunctions.
Fewer risks. Traders’ minimal overnight market activity reduces spread expansion, saving on deposits.
Good for beginners. The asset rate changes efficiently, making it easier to understand the trading principles.

How to Avoid Ranging Forex Markets at Night

Of course, there are some cons to trading at night. There may be sharp price surprises due to the large volume encountered. It should be noted that Japan realizes its data, and some price complications are possible. The spreads are usually wider after the exchanges close, which should be remembered while receiving several pips per operation. Also, there is a chance to skip the European trading session.

And don’t forget about such thing as… your sleep. If the night in the market coincides with the night in your time zone, you may feel tired. Distractedness, irritability, and lack of concentration can negatively affect the results. Therefore, be attentive to your moods and well-being – this is also one of the keys to success!

Best Forex Pairs to Trade at Night

Now, the most interesting part of this article! Pairs you should trade at night sessions:

GBP/CHF;
EUR/CHF;
EUR/GBP.

Riskier, but still popular and promising:

AUD/JPY;
USD/JPY;
EUR/JPY;
GBP/JPY.

As China and Japan are among the largest importers and consumers of raw materials in the world! Available for trading:

Gold;
Oil (WTI);
Gas (NGAS - Natural gas).

Cryptocurrencies (major list):

Bitcoin (BTCUSD);
Ethereum (ETHUSD);
The Litecoin (LTCUSD);
The Ripple (XRPUSD).

If you are not a Forex trader, there are also CFD trading on indices:

Japanese Stock Index — Nikkei (JP225);
Hong Kong Stock Exchange — Hang Seng (HSI50);
Australian Stock Market Index — ASX200.

If you prefer trading in commodities, you also have the opportunity to find interesting options for investing at night. Commodities are available for trading most of the night and are quite volatile, thanks to Asian economic news.

Regular tips for each region

Africa (Nigeria, Kenya, Egypt, Tanzania, Namibia, Angola, etc.). Thanks to the active FX trading community and support of foreign investment, the region is very promising and full of possibilities. The time zone in Dubai overlaps the European session and partially covers the New York session. Thus, all traders in the UAE can use the major currencies — US dollars, euros, and pounds sterling — at best possible time.

If you need to keep an eye on naira price fluctuations, it is wise to keep an eye on developments on the Nigerian stock exchange. Luckily, his trading time almost wholly correlates with the London session.

Which Forex Pairs Should You Avoid Trading at Night?

There was a lot written about what to do, and now few words about what is Nnot reccomended.

While the most traded currencies (USD, EUR, JPY, GBP, CHF) are available 24 hours, some in several emerging markets are not. The list of emerging markets includes India, Mexico, Russia, Pakistan, Saudi Arabia, China, and Brazil.

After 2-3 am, it is better not to trade currency pairs containing the Japanese yen since Asian markets are pretty active at this time, and movements in these financial instruments are possible.

Night trading may seem attractive, but still, all major events take place on the market during the daytime.

Conclusion

So, let’s make a summary about Forex trading at night with short but useful tips:

Focus on the economic calendar - be aware of what happened in the past and what’s coming next;
Choose proper currency pairs due to your region and time;
Conduct a qualitative analysis of assets dedicated to night trading;
Determine important price levels (support/resistance);
Some currency pairs will have a smaller margin requirement than some of the pairs most active during North American and European sessions;
Use scalping during the publication of economic and Asian market news;
Pay attention to trading ranges and breakouts in case of low volatility.

Of course, all the nuances of the market are unpredictable. But we hope that this material is useful and will help your development as a successful trader.

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Author:

Yuliia Skorokhod

Yuliia Skorokhod blends journalism with financial expertise to produce clear, educational content at JustMarkets, guiding readers through financial concepts with ease and clarity.