The allure of forex day trading is that you can trade hours a day. Unfortunately, that doesn't mean you should. The forex market operates hours a day during the week, because there's always a global market open somewhere due to time zone differences. But not every global market actively trades every currency. Therefore, different forex pairs are actively traded at different times of the day.
When New York U. To see major market hours in your own timezone, or your broker's charts time zone, use the forex market hours tools. Times are in GMT. There is a significant increase in the amount of movement starting at , which continues through to After this, movement each hour begins to taper off, so there are likely to be fewer big price moves day traders can participate in.
Day traders should ideally trade between and GMT. Volatility changes over time. For example, daily average volatility at the time of writing is pips per day. Daily average movement could increase to pip per day, which means each hour is likely to see slightly higher pip movement.
Or daily average movement could drop to 75 pips per day. While overall volatility may change, the hours which are most volatile generally do not change too much. Note that daylight savings time may affect trading hours in your area. There is adequate movement to potentially extract a profit and cover spread and commission costs.
This will maximize efficiency. During this period you'll see the biggest moves of the day, which means greater profit potential, and the spread and commissions will have the least impact relative to potential profit. Also, London and New York are both open during this three-hour window.
Updated February 10,More...