Jan 02 2022 1
Although the forex market works all the time, the best time to trade forex in South Africa is not whenever. Finding good trading hours will help traders easily earn "huge" profits. So what is the best time to trade forex in South Africa? Let's explore the details right here in this article!
Trading sessions overlap in the Forex market
According to the experience of the best forex traders in South Africa, the ideal time to trade is when there are open trading sessions overlapping. The reason is that it is at this point that the returns are better due to increased volatility. As follows:
London/New York: This is from 19 pm to 23 pm in the schedule of the Forex market. According to statistics, more than 70% of all transactions will take place at the above time because USD and Euro are 2 common basic currencies in the world. Therefore, the profitability due to high price volatility also increases.
Sydney/Tokyo: This is from 06 am to 13 pm. Although there was not as much volatility as the London & New York session, this time still created a thrilling trading opportunity with outstanding volatility. EUR/JPY is considered a great currency pair as it is the most traded currency pair in this session.
Tokyo/London: This is from 13 pm to 14 pm when the Forex market is "the busiest". The explanation is that the Tokyo & London trading sessions overlap for about an hour, so there will be less transaction activity compared to the two above-mentioned sessions. However, if you want to trade the EUR/JPY pair, this is definitely a good opportunity to make a good profit.
In short, for South African traders, the most ideal time frame for trading is the time when the UK and US sessions coincide. It is at this time that most people are free and able to participate in trading, so there is always the strongest price movement.
What is the best time to trade forex in South Africa of the day?
If you are the type of trader who wants to take advantage of the large fluctuations of the Forex market with the goal of increasing personal finance, then choose the u session and the US session. Pay special attention to the period from 19:00 to 23:00 (summer) and 20:00 to 24h (winter) according to South African time. Because this is the time when the London & New York sessions run together, so the number of transactions increases. Following that is the result of the market moving at a fast pace, creating many great opportunities to help you increase profits when participating in the Forex market.
To make it easier for you to understand, we take an example. In the morning (South African time), it will take 4 hours for the AUD/USD pair to move 20 pips. However, if it is in the evening according to South African time, it only takes 1 hour for the EUR/USD pair to increase to 30 pips and decrease to 50 pips.
Looking at the chart above, we can easily see the volatility of the EUR/USD pair in the above time frame. This currency pair moves more pips between 8 and 12 pm in South Africa.
What time frame should South African traders choose in the week?
Many experts also estimate that the forex market will be more active on Tuesdays, Wednesdays, and Thursdays. In fact, until Friday, the market will still be active, but only in the morning because traders often exit orders early for the weekends.
Priority should be given to the busy Forex market days
Unlike amateur traders, seasoned professional traders will not trade all day. On the contrary, they choose when the market is volatile, or wait until the price reaches the level they want,... Therefore, if you want to limit your risk and avoid trading when the market is still, choose the best time to trade forex in South Africa.