Profit Tips for Utilizing European Trading Hours
Opening and closing times for European trading are typically based on a nation's bank operating hours. Although trading hours worldwide may be open continuously, they are not. Over the course of a day, trading hours adjust to various time zones.
Please be aware that the nearly always open foreign exchange market only operates from Monday through Friday.
This does not, however, ensure that there is constant market activity and trader profit. There is little chance of making a profit and significant profits if the market is typically quiet.
Please be aware that entering the right market and not just adhering to local trading hours is necessary if you want to make money.
World Forex Trading Opening Hours
Avoid the error of considering trading time, especially for new traders who have yet to develop their innate sense of when to conduct purchases and sales.
Even if you can still profit, it won't be as significant as in a busy market. It's crucial to be aware of the global trading opening times so you can identify the markets with wetlands.
1. Australian Trading Hours
Due to their shared time zone, Australia's trading hours are very close to Asia's. As a result, occasionally, the Australian and Asian markets share the same trading hours. The opening and closing times for Australian (Sidney) trading are 5:00 AM and 2:00 PM, respectively (GMT+7, Jakarta).
2. Asian Trading Hours
Asian trading hours are based on Tokyo, much like how European trading hours are based on London and American trading hours are based on New York. The start of the Asian trading session is at 7:00 AM (GMT+7), and it ends at 4:00 PM (GMT+7, Jakarta). The opening hour for Indonesia, which is in the same time zone, is that time.
3. European Trading Hours
The UK, along with two other nations like Switzerland and Luxemburg, is recognized as a thriving forex trading market in Europe. The UK has been a central industrial hub since the early 19th century. At these times, many rebate forex brokers startup. Starting at 1:00 PM (GMT+7, Jakarta) and ending at 10:00 PM (GMT+7, Jakarta), respectively, are the European trading hours.
4. American Trading Hours
Forex trading takes place in New York, the city that never sleeps. Trading hours in the bustling town begin at 8:00 PM (GMT+7, Jakarta) and end at 5:00 AM (GMT+7, Jakarta). However, each time zone has its DST during the summer and during critical economic times. The hours are typically extended by 1 hour during DST.
Why Choose European Trading Hours?
Looking back at its history, we can see that the Blue Continent, or Europe, once controlled all of the world's trade. Whether it was done with gold coins in the Byzantine era, gold trading in the medieval period, or online trading in the modern era. European trading hours used to be more challenging and stable.
The UK, which has London as its commercial hub, is the epicenter of the bustling European trading day. At 36%, the European market currently accounts for a sizeable portion of all trading hours worldwide, taking up more time than the American, Australian, and Asian markets combined.
The overlap in European time will result in longer hours for forex trading with higher market volatility and liquidity. Therefore, keeping European hours at least allows you to make a profit of almost 100% in a reasonable amount of time. And what's interesting is that until the start of the American session, the trend from the European hour session will hold.
The overlap period is known as the period between the start of American trading at 8:00 PM (GMT+7, Jakarta) and the end of European trading at 10:00 PM (GMT+7, Jakarta). In Indonesia, these times are ideal because they are both too late to watch trading and too busy to complete other tasks.
In actuality, trading is specific to all currencies. However, knowing which currencies are profitable is also necessary before exchanging or buying and selling. The most valuable exchange rates are EUR/USD (Euro to US Dollar), GBP/USD (British Pound Sterling to US Dollar), USD/JPY (US Dollar to Japanese Yen), and USD/CHF (US Dollar to Swiss Franc) (US Dollar to Swiss Franc).
Determining When to Trade
Asian trading hours typically see less activity than European trading hours, which results in low liquidity and difficult-to-find profits. Although European trading hours are preferred because of the quick and steady market movements, there might be better options for your needs. You should also consider the following if you want to make money during European hours.
1. Consider trading time according to routine
Spending time trading in Europe is a benefit of having lots of free time. It could extend into the American session and other busy trading hours, not just European trading hours. However, this is distinct from traders who have a different amount of time than full-time traders.
Part-time The market is still open to traders who typically have other commitments like work or school when they have free time. The best time to concentrate on watching the market and placing trades is during prime time hours, which also fall during the overlap of European and American trading hours.
2. Considering the trading time according to the trading system
Of course, using a short-term trading strategy with the EUR/USD pair during the European or American clock sessions will yield better results. Different trading systems can be used to develop a forex trading system, a trading rule derived from the initial plan and executed consistently and repeatedly.
You should choose the assets, such as currencies, indices, and commodities to be traded, for the trading system. After that, decide on the best time to trade, each transaction's size (lot) (trading volume), and the strategies and positions to take.
3. Considering trading time according to profit and risk targets
The Asian market is better suited to minimizing significant risks due to its low volatility. However, the less complicated market fluctuations make market trends more predictable, reducing profit. But trading in the Japanese Yen, Australian Dollar, and New Zealand Dollar is quite appealing.
But the best time to trade is during European hours if you want to make significant profits. Big losses can also occur along with big gains. Despite the rapidly rising volatility, the European market's aggressiveness produces rapid price changes. To enter European trade is to risk suffering all the consequences.
The best European trading times are from 8:00 PM (GMT+7, Jakarta) to 10:00 PM, when the American and European trading sessions overlap. The hours of operation for the Euronext, London (LSE), German, and Swiss exchanges are typically 3 PM (GMT+7, Jakarta) until closing. Most importantly, refrain from trading for 1-2 hours before or after critical economic data releases, such as Nonfarm Payroll, inflation, etc.