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The forex market operates for five continuous days to traders from every other part of the world; not every hour is, however, equal in skill concerning trading. Being able to identify the best times of trading will ensure that one can maximize the profit potential while minimizing risks.
This market operates within four major time zones: Sydney, Tokyo, London, and New York. The peak trading hours are any intersection that occurs between two major trading sessions, as there is greater volume and more action in the markets at such times. Specifically, the London-New York overlap-from 1:00 PM to 4:00 PM GMT-is considered very important because these two financial centers account for over half of the total forex trade worldwide.
For instance, the London session represents the range from 8:00 AM to 5:00 PM GMT and is considered quite ideal since it has high volatility-good enough to provide many trading opportunities. During the Sydney and Tokyo sessions, the levels of volatility are smaller, and therefore, it would be better to open more low-risk, long-term trades.
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