The Forex market, unlike the rest of financial markets, is a market with a continuous schedule from Sunday to Friday. It opens on Sundays and is always operational until its closing on Friday evening.
During the opening hours of the Forex market, you can carry out the transactions that you deem appropriate, but keep in mind that the trading volumes and opportunities are higher at certain times of the day, coinciding with the participation of the majority of investors worldwide.
The best moments of the day to invest in Forex are directly related to sessions in the markets of Europe, Asia and the United States.
How do sessions affect the Forex market?
The moments of greater volatility coincide with the openings of the 3 main sessions (Europe, Asia and the United States):
- The session in Europe begins with the opening of London at 08:00 GTM (09:00 Spanish time). We must also take into account that the opening of Frankfurt (increasingly relevant) occurs an hour earlier at 07:00 GTM (0800 GMT).
- The session in Asia begins with the opening of Tokyo at 00:00 GTM (01:00 am Spanish time). We must also take into account that the opening of Sydney occurs two hours earlier at 22:00 GTM (23:00 Spanish time).
You must take these details into account:
- Each session has very tight currency pairs and in the minutes following the opening of each session there is a greater volatility in these pairs.
- The opening that produces greater volatility is that of the session in Europe. The moments of greater oscillations generally occur between the 30 minutes before the opening and the 2 and a half hours following the same (from 07:45 to 10:30 Spanish time).
- The higher trading volumes coincide with the overlap between the American session and the European session.
- It is usually not advisable to keep positions open during the weekend. Fridays are usually the right days to close the open positions during the week and avoid major swings or unexpected gaps during the weekend.
- On Sundays or during holiday periods the volume of trading is usually low, making the market more manageable. Most traders choose to invest in Forex avoiding these moments of lower volume.
What is the best time to invest in Forex?
The best time to invest in Forex is between 08:00 GMT and 16:59 GMT (9:00 a.m. and 5:59 a.m. Spanish), coinciding with a larger number of traders operating in the foreign exchange market and therefore With a large trading volume. In this schedule most of the daily operations of the entire Forex market take place.
The most important moments during these hours are: 08:00 GTM - 09:00 Spanish time (London opening), 13:00 GTM - 14:00 Spanish time (opening in the United States) and around 16: 59 GTM - 17:59 Spanish time (London closing).