Since the forex market remains open 24 hours a day, traders can access it anytime. However, the best time to trade currencies varies in different regions of the world. For example, the forex market has three major sessions, including European, North American, and Asian sessions. Moreover, it is believed that there are few hours when the market becomes highly liquid during each trading session. Therefore, knowing the best trading hours as per your region can help you make more profits. In this piece, we discuss the best timing to trade the forex market in India.
Let’s first figure out the market hours for each trading session. I have already converted the timings for each trading session into Indian Standard Time (IST) for your convenience.
Asian Session (Tokyo Session): 04:30 AM – 1:30 PM IST
European Session (London Session): 12:30 PM – 09:30 PM IST
North American Session (New York Session): 05:30 PM – 1:30 AM IST
First of all, the Asian (Tokyo Session) begins. It is one of the key financial markets for different economies across the globe. As an average estimate, the Tokyo session accounts for 6% of the forex volume traded during three sessions in a day.
Then comes the London Sessions, closely linked to the Asian and American session. While the London Session timings start in the afternoon and last up to 10:00 PM, it might be the best trading window, as per Indian timings. Not to mention, more than 34% of trading occurs during the London trading session. Experts believe that during the London Session, an increased number of traders makes the market highly liquid.
Finally, the New York session kicks off. Most of the financial market follows economic releases across wall street. Nearly 17% currency exchange takes place in the New York session. The New York timings might suit part-time Indian traders the best.
The trading window of the New York session starts at 7:00 PM. It’s the time when the majority of people are returned to their homes from work. Therefore, they have plenty of time left to explore trading opportunities up till late at night.
Since the forex market becomes highly liquid during the overlap timings of all three sessions, it is the best time to trade anywhere in the world.
Effects of Economic Releases on the Forex Market
Getting to know the overlap timings for different sessions can help traders to schedule their trading priorities. However, the impact of economic releases should also be kept in mind. Major economic releases can create increased volatility during a slow trading period. Resultantly, it could make the trader’s world upside down in a matter of seconds.
Not to mention, since dozens of economic releases hit different markets throughout the day, even successful traders don’t necessarily need to keep tracking all of them.
It is imperative to know the overlap timings for each session to figure out the most liquid trading hours in Indian timing. However, traders should first determine whether low or high volatility suits their trading style. Following the overlap timings might help high volume traders more.