If you are thinking about starting trading in Forex and want to do it as efficiently as possible, you should know that choosing the right time is of great importance.
To do this, experts recommend building an optimal schedule, which will indicate the most active Forex hours. Using this material, which contains up-to-date data on the schedule of forex trading sessions, you can choose the best hours for trading Forex in South Africa for a specific currency pair.
What time is the foreign exchange market?
The advantage of the forex market is called its round-the-clock availability on weekdays and since currency exchange is carried out in any time zone, you can enter the Forex market when it is convenient for you.
The exception is weekends and holidays like Christmas and New Year when there is little trading activity in the market.
Major currency exchanges
New York is considered the trading center of the American currency. But besides this, the auctions are held in such Asian cities like Tokyo, Singapore, Hong Kong, and Shanghai, as well as in European London, Amsterdam, and Frankfurt.
What is the best time to trade?
For successful trading in the Forex market, we advise you to remember several important rules:
High activity in the market is beneficial for traders.
The correct time is the hours of most significant activity in the forex market, the period when the trading volume is maximum. During this time, traders can experience several advantages like high liquidity and volatility, and tight spreads.
The choice of the best time to trade depends on the instrument you trade.
Everything is simple here. If you are interested in GBP / USD, then choose the trading hours of London and North American sessions. Why? It is at this time that the price of the currency pair will be most dynamic.
At the beginning of the trading session, the value of the currency pair is more volatile.
Not always, but most often, the first 2-3 hours of a trading session are the most active, and we do not recommend skipping them.
Important world events can cause increased volatility at any time of the day.
Unexpected events, such as a container ship stuck in the Suez Canal, could temporarily raise oil prices. Off-schedule markets can be impacted by anything from political turmoil to transportation problems or natural disasters, so stay updated with the current news and events.
What is the best time to trade dollars in South Africa?
The US Dollar accounts for almost 90% of the total forex turnover. The best time for a trading session is from 2 pm to 5 pm. High trading volume is provided by two main, simultaneously operating markets (US and EU), which creates a good chance for a short-term position.
Trading in large volumes does NOT guarantee profits.
Remember that trading forex during active hours can give you more opportunity to profit, but this is not a guarantee of a profitable trade. The strategy may not work, the trader may make a mistake. There may be several reasons; so, you should take this activity as responsibly as possible.