Suppose you have learned forex basics or even more than just the basics. You know what a forex strategy is, and you have learned to use one in trading. Yet, the results are not impressive as the price of the currency pair is sluggish, and you end up with little or no profit at all. One of the reasons for that may be simply that you are trading at the wrong time. The forex market has its ups and downs throughout the day, meaning that the activity in the morning is completely different from the activity in the evening. As a trader, you want to enter the market at its most active hours. Read on to learn more about the most advantageous time for trading currency pairs in Malaysia.
When you hear “the best time to trade,” take it as “the time of the day when your currency pair is the most volatile.” The goal of any trader is to capitalize on currency price fluctuations. Thus, if the price doesn’t fluctuate, there is no point in wasting your time in front of a computer screen. Leave it and return at a more appropriate time. Let’s look at the example below.
Suppose you trade USD/CAD. Obviously both the American and the Canadian dollars are the most actively traded when the American and Canadian markets are open and there is a high volume of exchange operations. Having that said, it is clear that this currency pair should be traded when it’s daytime in North America. Convert it to the Malaysian time zone and you get the time period from 8 pm to 5 am. Note though that the markets are closed on Saturday and Sunday.
Low volatility prevents high-profit trades
This type of schedule might not make an early bird happy. But it is indeed the most potentially interesting time to trade in Malaysia. The American dollar is a part of the majority of main currency pairs which makes anything that happens in the American market highly influential to practically any asset. It is not only that large financial institutions exchange money during those hours. It is also the time when important economic data is released. These factors can’t help but influence the quotes. So consider switching your habits and staying up late.
Talking about the overall activity in the market, the most active hours are during the overlap of the European and North American trading sessions – from 8 pm to 11 pm (particularly for EUR/USD and GBP/USD pairs). During those hours, the major currencies are characterized by high liquidity, their prices are fluctuating, and the spreads are usually the lowest. All these factors make the late evening in Malaysia the most advantageous time for trading.
You should adjust your trading schedule with respect to the instrument you trade.
Forex Trading Sessions in Malaysia
Let’s now look at another example. Suppose you trade another major currency pair – NZD/JPY. This currency pair doesn’t have the American dollar in it so concentrating on the American market might not have any sense. You should then adjust your schedule to trade in the early morning hours when the Pacific (Wellington) and Asian (Tokyo) sessions are open.
The overlap of the Asian (Tokyo) and European (Frankfurt) sessions (2 pm to 5 pm) might be good for trading EUR/JPY. Hence, the rule is simple, you should adjust your trading schedule with respect to the instrument you trade. Find the detailed schedule for the biggest centers for currency trading below.
Read more: Forex Trading for Beginners in 2022
| Area | Opening (GMT+8) | Closing (GMT+8) |
|---|---|---|
| Wellington (Pacific session) | 06:00 am | 12:45 pm |
| Sydney (Pacific session) | 8:00 am | 3:00 pm |
| Tokyo (Asian session) | 8:00 am | 5:00 pm |
| Hong-Kong and Singapore (Asian session) | 9:00 am | 5:00 pm |
| Frankfurt (European session) | 2:00 pm | 10:00 pm |
| London (European session) | 3:00 pm | 11:00 pm |
| New York (North American session) | 8:00 pm | 5:00 am |
What about your Broker?
There you are, trading late at night in Malaysia, trying to make money in the currency exchange market. But what if any issue occurs or an urgent question arises? Then you might need to contact customer support to resolve your issue. Unfortunately, not all brokers in Malaysia can provide that service. So make sure you trade with a forex broker that can support you 24 hours a day. Otherwise, a profitable opportunity may turn into lost funds.
Read more: Is Forex Worth Investing In
Conclusions
As most of the trading volume comprises the pairs with the US dollar in them, the most active trading takes place during the overlap of the European and American sessions. This is why the hours of the overlap are considered the best for buying and selling currency. In cases that don’t involve trading USD, it makes sense to switch your attention to the trading sessions that represent your assets, e.g., European and Asian sessions for GBP/JPY. Although your trading schedule may affect the bottom line greatly, it doesn’t guarantee that all your trades will be profitable. Any trade you make must be primarily based on a holistic strategy and a disciplined approach.
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