Best Time for Forex Trading in India

The Forex Market Hours India

Forex Market is an enormous financial market, with having traders from all over the world. You’ll be surprised to know that the daily trading volume ranges from two to three trillion dollars. The best part is that you can trade from any part of the world.

Do you reside in India and thinking of the Forex trading hours? The Forex market hours in India abide by the Indian Standard Time. Many people fall prey to dilemmas while calculating the international trading hours in the Indian timezone.

The best part about the Forex market is that it is open 24 hours a day. However, not all hours of the day are profitable. For this reason, you need to consider the most volatile hours based on the trading session you choose. In this article, we’ll discuss the most profitable forex trading hours in India!

The 3 Major Forex Trading Sessions

You’ll find liquidity in all the forex markets. However, they are not equal. You’ll notice there are hours when the price shows constant volatility. Similarly, there are hours where the volatility for the currency is muted.

Sometimes the currency pairs showcase carrying behaviour. It can be a result of the demographics of the traders trading in the markets at that time. In the fast-paced Forex markets, trading is tricky. In this section, you can learn how to take advantage of different Forex market trading hours.

Forex trading hours:

  • Asia Session (Tokyo Session): 05:30 AM -11:30 IST
  • North Amerca Session (New York Session): 07:00 PM to 1:30 AM IST
  • European Session (London Session):
    1:00 PM to 10:00 PM IST

New York Stock Exchange

  • Market Open Time:
    07:00 PM to 1:30 AM IST

The New Stock Exchange is where 16.6% Forex trading occurs. Most of the financial markets seem to follow the updates put across by Wall Street. It would help if you stuck to the international news before positioning your orders on the NYC Stock Exchange.

The best part of trading at the NYC Session for Indian traders is that you can trade after your usual work hours. Since the timing for this session falls almost during the night, you have to stay up till late for trading.

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The peak liquidity in the New York Stock Exchange takes place during the overlap hours. You will be benefitting the most from trading during the hot zones. You should also note that the New York Stock Exchange session is the last trading window of the day.

As a result, you’ll notice a high trading volume during the open and close timing of this market.

London Stock Exchange

  • Market Open Time: 01:00 PM to 10:00 PM IST

The primary hours of the London session are essentially mealtime in India and last till the final supper of the day. You might not be aware, but 34.1% of Forex trading occurs in London. Also, nearby timezones such as Denmark, Germany, and France account for another 7.5 Forex trading.

But, why is the London market so suitable and popular for trading Forex? It is simply because of the presence of the vast number of traders present in the market. The market is closely linked with both American and Asian sessions.

The London Stock Exchange is perfect for the traders in India who don’t prefer to stay up late and trade. Most importantly, you’ll see currencies such as British Pound, Euro, and Swiss Franc to be most active during these hours. You will be dealing with domestic European currency pairs in this session.

You might also be wondering the reason behind the enlarged trading span of the London Stock Exchange. It is merely because of the presence of other capital markets. Don’t forget to take advantage of the hours of overlap when the forex market becomes proactive.

Tokyo Stock Exchange

  • Market Open Time:
    5:30 AM to 11.30 AM IST

On every trading day, the Asian session is the first one. The forex market begins its day with hustling currency market hours from Tokyo. However, traders from India can only access these markets during their tea time. So, if you want to take advantage of the exclusive Tokyo Forex market hours, you’ve to gulp that tea quick!

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Tokyo also happens to be the essential financial center for many economies on the continent. You should also know that Tokyo accounts for 6% of worldwide Foreign exchange and currency trading. Trading is most fruitful for this session when it overlaps with the Frankfurt session.

You’ll find many market traders hovering over the Tokyo session to position large orders. Market Consolidation affects the Tokyo session, and the currency pairs generally take a narrow range. If you want to incur profit margins, you can choose to trade when the market is shifting towards to overlap with the London session.

Why Are the Forex Trading Hours Critical in India?

Although the Forex markets are open 24 hours a day, the market might be more active during specific sessions. Also, when there is an overlap between two sessions, you can benefit from that situation. During crossovers, the spreads are much tighter.

However, these active sessions are only beneficial when the currencies are available in both crossover locations.  For instance, GBP/USD faces significant trading volume when both US and European sessions are open between 8 am, and 11 am (EST).

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What Is the Best Time to Trade Forex in India?

Typically, the Forex market in New York is most active just when it opens. During this time, the volatility and liquidity will be higher as the traders will open and close the positions. Traders generally take into account the news before taking any actions.

When there are high trading volumes, loads of traders are buying and selling currency pairs. Substantial volatility and high volume can bring large pip fluctuations in the trading hours. There are also a couple of hot zones for foreign exchange traders. These are the best overlap timings for traders in India:

  • The Asian-European overlap is from 01:30 PM to 02:30 PM IST.
  • The US-European overlap is from 05:30 PM to 08:30 PM IST.

You should also know the best days for trading foreign exchange is Thursday, Wednesday, and Tuesday. These are the days where the pairs receive the most action.

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When Shouldn’t You Be Trading Forex?

It would help if you were cautious while indulging in trading hours for Monday, Friday, and Sunday. On Friday, the Forex market may not be very responsive. On Sunday, you can’t expect traders to leave behind their weekend and trade currency pairs.

You should also be aware of non-farm payroll report releases, new events, and holidays. Though the holidays might not clash with the ones in India, you have to be mindful of international holidays.

Similarly, you should concentrate your trading activities in the four best months of the year that are:

  • September
  • October
  • November
  • December

Your trading activities might turn out to be fruitful also in these five months:

  • January
  • February
  • March
  • April
  • May

And, these are the worst of all trading months in the calendar:

  • June
  • July
  • August

Impact of News Forex Market Volatility

You might also be wondering how the news might affect Forex market volatility and how it is linked to market hours. Well, a high-impact financial report or information can spike up the forex market volatility. On the other hand, it can also make trading in the Forex market difficult. It all depends on the nature of news and its effects.

Even though there are best days like Tuesday & Wednesday and worst days like Monday & Friday, breaking financial news is crucial. For example, the forex markets become proactive around the scheduled time for important economic reports.

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Trade With Us!

When you are aware of the suitable forex trading hours, you can efficiently dodge the risks. Now that you have all the information about the reasonable Forex market hours, all you need to do is open an account.

We are a regulated Forex broker who deals with the majority of the Forex market instruments.  Registering comes with perks like a free guide and a practice account. Sign up today and explore your fortune at the currency market.

Best Time for Forex Trading in India

Source: https://easytrade.io/news/the-forex-market-hours-india/

Posted by: derivbinary.com