Trading has already become the main source of income for many traders around the world. Are you the one who considers joining them and earning money anytime and anywhere it’s comfortable for your schedule? Choosing the right time for trading is crucial since it defines the profitability of your operations – active forex hours play a leading role. That’s the article where we’ll provide the details about the schedule of trading sessions and the best time to trade forex in Indonesia.
Things to Consider
- Brokers provide tighter spreads during heavy trading volume. Spread is a difference between the bid price and the ask price of a particular currency, and that’s the sum you pay for broker’s services.
- Political and economic imbalance can greatly affect the prices in the currency market.
- Trading volume of one session varies from the volume of another session. The highest trading volume occurs during the overlap of London and New York sessions.
- There are four major currency market exchanges located in Sydney, Tokyo, London, and New York. It’s important for forex traders to pay close attention to the hours of trading since the profitability of those operations varies from one session to another.
Forex Market Hours
The international currency market is supported by such participants as banks, corporations, hedge funds, brokers, and traders around the world. Forget about those standard business hours with the opening at 8 a.m. and closing at 5 p.m. The forex market operates 24 hours a day, 5 days a week in different parts of the world. To be more specific about the timeframe, it is the following – 5 a.m. WIB on Sunday until 3 a.m. WIB on Friday. Its availability is just a perfect opportunity for hundreds of thousands of people to choose the best time slot for trading. Whether it will be a full-time or part-time job – the decision is yours.
Read more: How to Buy and Sell Forex for Beginners
Forex trading is possible at any point in time since at least one currency market is always open. Talking about the hours of overlap, traders should understand that as the specific time range that occurs during the closing of one market and the opening of another. As a result, there are two exchanges open simultaneously, and that drastically increases the trading volume and boosts volatility. What does volatility mean? Rapid changes in the prices of currencies. High volatility means high demand, and this is a good turn for making a profit.
Forex Trading Hours in Indonesia
Here are the four major currency markets with their time of work.
| Area | Opening (WIB) | Closing (WIB) |
|---|---|---|
| Sydney (Pacific trading session) | 04:00 a.m. | 01:00 p.m. |
| Tokyo (Asian trading session) | 06:00 a.m. | 03:00 p.m. |
| London (European trading session) | 02:00 p.m. | 11:00 a.m. |
| New York (American trading session) | 07:00 p.m. | 04:00 a.m. |
To find out more about the specifications of each trading session, click here.
Hours of Profit
The session you’ll choose for conducting trading operations strongly depends on the currency pair you want to trade. There are seven currencies that lead the market (known as majors) – the euro, the US dollar, the British pound, the Japanese yen, the Canadian dollar, the Australian dollar, and the New Zealand dollar.
London and New York markets are considered to be the busiest ones. The EUR/USD (the euro and the US dollar) currency pair is the most traded one in the forex market because of representing the world’s strongest economies.
When there are two exchanges open, the number of orders significantly increases. The bid and ask prices of one exchange market have a direct impact on the bid and ask prices of another “active” market. All this high demand results in increased volatility and reduced spreads. So, there is a perfect trading opportunity during the overlap of these two trading sessions – talking about Indonesia it’s 7 p.m. – 11:00 p.m. (New York and London exchanges are open).
The session you’ll choose for conducting trading operations strongly depends on the currency pair you want to trade.
Here are the overlaps of other trading sessions (WIB):
- 6 a.m. to 1 p.m. – Tokyo and Sydney exchanges are open.
- 2 p.m. to 3 p.m. – Tokyo and London exchanges are open.
Read more: The Importance of Discipline and Patience in Forex Trading
Conclusions
Forex trading in Indonesia might become challenging if you don’t follow the recommendations about trading hours. This market is all about you being consistent and rational. Define the currency pair you’re interested in, and then analyze what hours are the best for profitable trading.
P.S. make sure your broker has a 24/7 support team ready to resolve any issues and provide recommendations.
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FAQ
Your trading time should be determined by a currency pair you want to trade. For example, choosing the EUR/USD currency pair, it’s recommended to trade between 7 p.m. – 11:00 p.m. – during the overlap of two trading sessions.
Forex trading is considered to be a beginner-friendly industry – novice traders can start trading using a demo account, which is a risk-free way of improving their skills. For more experienced traders, there is an opportunity to open a standard account where it’s enough to deposit just $1 and start trading.
The forex market operates 24 hours a day, 5 days a week around the world – from 5 a.m. WIB on Sunday until 3 a.m. WIB on Friday.
You can check what market is open now following this .
Basically, it may take up to 4 weeks (8-9 hours a day) to learn the theoretical part of forex trading. You should definitely consider opening a demo account which is a risk-free way of learning how the forex market works.
