Nowadays Stock Exchanges of London, New York, Tokyo and Sidney are the main marketmakers in the world. These points of flow of funds crosses provide more than third part of currency dealings.
Even though working time of FOREX market is not limited (24 hours a day, 7 days a week) and not attached to any stock exchange, activity and quiet hours are observed in the exchange market. The given patches are concerned to intersection of working time of the world stock exchange. Thus for example a period from 1:00 pm till 5:00 pm (GMT 0) is time for trading session together on the largest New York change and on the second in terms of volume, London stock exchange. The most activity in the market is to be observed at these particular 4 hours and, consequently, after market volatility increase, risk level for market participants also rises. However, just in this period of the storm, not calm, you can earn the highest profit, thank’s in the largest part to strong wind swinging rates of exchage. That is why traders following agressive manner of trade choose for themselves periods of highest activity on FOREX.
But in the way if you are adherent of conservative trading methodic and minimization of risk is your priority, then the most comfortable time for your trades is patch from 22:00 till 00:00 (GMT 0), when only Sydney exchange works all over the world. At the same time I should point to the fact, that in this period you can as well not to loose great sums from your account as not to catch a really big fish. In the other side, for better minimization of even small losses you can use very simple instruments of heging.
Experts advice newbies to start their careers in FOREX at the hours of lowest activity. It is great time to try the whole existing market instruments, trace back trends and practice various strategies. But sooner or later shoal will get on your wick and you would like to enter “big waters”.
The article is added by Alexander Demkin,