Best Time For Forex Trading in India || Story Of Law ||

 Best Time For Forex Trading in India

The forex markets are open 24 hours for 5 days a week (Monday - Friday) as per IST (Indian Standard Time) and we can trade any time using the forex trading app (e.g. OctaFX). But, we can’t expect all hours of the day to be profitable. Because in the forex market, profitable hours are considered when currency pair prices are highly volatile. High volatility happens when more people are actively betting on currency prices. In high volatility, the prices change constantly to provide you with better chances for quick gains.

Let’s discuss the best time for forex trading in India in detail. We have discussed 2 types of timings best for forex trading in India –

• Exchange wise best time – When top exchanges are operational

• Trading session overlaps – When trading sessions of these exchanges overlap

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Best Time For Forex Trading in India (Exchange-Wise)

1. London Stock Exchange

Market Open Time: 01:30 PM to 10:00 PM IST. London Stock Exchange dominates the forex trading market with 43% of global trading volume as per the Bank for International Settlements (BIS) report. The currency pairs that we can trade are – (EUR/USD, GBP/USD, USD/JPY, and USD/CHF)

2. New York Stock Exchange

Market Open Time: 08:00 PM to 1:30 AM IST. New York Stock Exchange is the second largest forex market with around 17% of currency trading happening here. Since the US dollar is involved in 90% of trades, we can get high activity if we want to trade in US-based currency pairs like EUR/USD, GBP/USD, USD/JPY.

3. Tokyo Stock Exchange

Market Open Time: 5:30 AM to 11.30 AM IST. Go with the Tokyo Stock exchange if you want to trade primarily in the 2 currency pairs mentioned below –

• USD/JPY (U.S. dollar vs. Japanese Yen)

• GBP/JPY (British Pound vs. Japanese Yen)

The 3rd highly traded forex pair in the Tokyo stock exchange is GBP/CHF (British Pound vs. Swiss Franc). You have a good chance of liquidity as the Tokyo stock exchange trades 6% of global forex trading. The Tokyo Stock Exchange is highly impacted by the news coming from China. 

4. Sydney Stock Exchange

Market Open Time: 5:30 AM to 12.30 PM IST. If you want to trade in an Australian dollar pair, then try your luck in the Sydney Stock Exchange which opens identical to the Tokyo Stock Exchange at 5.30 am IST. You can see heavy movement in  AUD, JPY, EUR, GBP to the USD currency pairs.

5. Hong Kong and Singapore (Asian session)

Market Open Time 07:00 am 01:30 pm IST.

6. Wellington (Pacific session) 

Market Open Time 3.30 AM to 10.15 AM IST.

7. Frankfurt (European Session)

Market Open Time 11.30 AM to 7.30 PM IST.

Best Time For Forex Trading In India (Trading Session Overlaps)

The best time for forex trading is when the market is most active because you get the tightest spreads and better chances to execute a trade at desired levels.  The forex markets are most active when the market hours overlap between two different sessions because the number of traders buying and selling each currency increases at that time.

Let’s have a look at three overlaps that happen every day –

• New York and London exchanges overlap 6.30 pm to 9.30 pm (IST)
• Tokyo and Sydney exchanges overlap 5.30 am to 12.30 pm (IST)
• London and Tokyo exchanges overlap 1.30 pm to 2.30 pm (IST)

Conclusion

So, the best time to trade forex depends on the currency pair you want to trade. The thumb rule is, that each currency pair is highly liquid when the local exchange sessions for the pair overlap, which means that both exchanges are operational at the same time. For example, if you want to trade in GBP/USD, you will get a higher trading volume when both London and New York sessions are open. If you trade US dollar-related currency pairs such as EURUSD, GBPUSD, and USDJPY then the best forex trading time in India is from 17:30 IST to 20:30 IST.

However, if you trade only Indian Rupee forex pairs, the best forex trading time is during the Indian Stock exchange from 9:15 till 15:30 IST.

Remember, high trading activity also leads to high volatility. While the volatility creates opportunities for profit-making but it may also lead to huge losses if your trading strategy is flawed. So be technically strong before diving into forex trading.

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Data Source:
• www.forex.in.rs
• www.simpleinterest.in