News & Blog
The Best Times To Trade Forex
- July 27, 2021
- Posted by: Admin
- Category: Blog
In the past, we have talked about the best days to trade forex, but what about the best times within those days to trade? This way, you have an even more specific bracket about trading skills and when you should be trading the most! In simplest terms, when more people are participating in the market, this is when you should be trading. At Smart Prime Academy, we want to go into more detail and give you all the info you need to know about prime trading times (see what we did there!)
The London & Tokyo Overlap
During this time, liquidity runs quite thin for a couple of reasons. In this overlap, there isn’t much going on in the Tokyo session, so once the afternoon comes around, there is not much going on here!
Around this time, European traders are just beginning their day, so trading in this period is not recommended as liquidity is low. Take this time to relax, watch some TV, read your favourite book, or look into other prime trading times such as the New York sessions.
The New York & London Overlap
In light of recent studies, liquidity is at its highest around 10AM and 3PM in London time (or 10AM New York time), and this is when the real action begins! This time of day is the busiest by far, seeing as most of the big traders in the forex market come out during this time slot.
As a final note, it is important to know that during this period, the WM Benchmark Rate is determined. It is set at 4PM London time, and is commonly classified as the “London fix”.
What this means, essentially, is that a currency fix is taking place. This is when currency prices for commercial transitions are fixed for a set time within each day. This is done because currency prices often fluctuate from second to second, and a daily reference point is needed.
How We Can Help
Our team understands that this can be a lot of information to take in all at once. With our blog posts, we try to provide as much information as possible to give you a better understanding of the forex market. If this is still not enough, and you want to learn the most beneficial knowledge of the forex market, then we here at Smart Prime Academy have got your back! With our highly professional trading courses in Toronto, you can learn everything there is to know about forex. If you have any questions or would like to find out more about our online lessons, be sure to call us at 1-877-870-0092 today!