Time is undeniably important. It plays a crucial role in your success because when trading currency pairs on Olymp Trade (whether it is CFD or option) you need to choose the time in conjunction with a currency pair. The hours of currency markets opening varies in different time zones. The main four financial centres are Sydney, Tokio, London and New York. Some are open in the mornings, some in the afternoons or evenings, according to your time zone.
When you know on which market you are going to trade, you need to define its opening hours. If you’d rather trade when the volatility is high you should choose hours when connected country’s economy financial market is open. If you would rather trade on small movements, then you should choose less active hours for the chosen currency pair. You need to keep in mind that the currency pair as a financial instrument is always made of two currencies. Every currency is connected to their countries economy. So, as a rule, you can expect higher volatility when the financial market in a particular country is open.
In this guide, you will find all the information you need in order to select the best hours for trading on Olymp Trade.
Keep in mind that I am using 00 GMT time zone (London time.)
- 1 4 main financial centres and their opening hours
- 2 Are you an early bird or a night owl?
4 main financial centres and their opening hours
Every market is open for 9 hours. But because those 9 hours do not start at the same moment all over the world, as a result, currency markets are working 5 days a week, 24 hours a day. European market (London) overlaps with both American (New York) and the Asian market (Tokyo). Australian markets (Sydney) is open after American markets close. It gives many opportunities to make a profit for option and forex traders.
Here are the times when the main financial centres are open (we are using 00GMT time zone):
Tip! We have created a clever tool that allows you to detect the most suitable time to trade currency pairs according to the time zone. It is called Forex Market Hours Tool.
Are you an early bird or a night owl?
Every person has his own rhythm of the day. Some function better in the mornings, some in the evenings. The traders are no different. Some prefer to work in the mornings, others late in the night. Look below and find out what currency pairs are best to trade according to day time.
If morning trading is something that suits you best (from 5 am to 12 pm) here are the currency pairs for you:
Currency pairs with high volatility: NZD/USD, EUR/JPY, GBP/USD
Currency pairs with average volatility: USD/JPY, USD/CHF, USD/CAD
If you would rather trade in the afternoon (12 pm to 7 pm):
Currency pairs with high volatility: EUR/JPY, USD/JPY, USD/CHF, USD/CAD, GBP/USD, GBP/JPY, EUR/USD, EUR/GBP
Currency pairs with average volatility: AUD/USD, NZD/USD
If you are a night owl and late trading talks to you (from 7 pm to 5 am):
Currency pairs with high volatility: AUD/USD
Currency pairs with average volatility: EUR/JPY, NZD/USD, USD/JPY, USD/CHF, USD/CAD, GBP/USD, GBP/JPY, EUR/USD, EUR/GBP
Get familiar with 10 charts below so that you have a deeper understanding of the volatility of various currency pairs in the specific time frames.
Time is crucial. You ought to define a time period that matches best your trading strategy. So just to illustrate this, if markets with high volatility are something that suits your plan best, you should aim at the time period from 12.00 GMT to 19.00 GMT.
Now you know how to choose the right time for trading on the Olymp Trade Platform. Don’t wait too long to put the theory into practice. But better safe than sorry. Try your new skills on your demo account first. Then you are ready to make your real trade.
Wish you luck!
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