Smart trading. Trading hours

To increase your trading success, you should consider the rhythm of the currency market: when one country wakes up and when another one goes to sleep. The activity of a currency at any given time depends on time zones.

Three trading sessions

A trading session is a business day on the stock exchange. The quotes that you see on your trading platform appear at this time. The currency pairs that include the national currency of a country that is awake are the most active (have high volatility), since  the country is active: news and economic data are released and VIPs are making speeches.

There are three main trading sessions (UTC).

Asian session

Trading period: 00:00 am — 09:00 pm UTC

Countries: Australia (Sydney), New Zealand (Wellington), Japan (Tokyo), China (Hong Kong), Singapore

High volatility: USDJPY, EURJPY (short-term trades up to 10 minutes help active traders — scalpers — to make a quick profit).

Moderate volatility: AUDJPY, GBPUSD, USDCHF (the trades from 15 to 60 minutes allow to make money for cautious traders).

The volatility of currency pairs during the Asian session
Daily trading range in points
The volatility of currency pairs during the Asian session

European session

Trading period: 06:00 am — 03:00 pm UTC

Countries: Germany (Frankfurt), Switzerland (Zurich), France (Paris), the UK (London) and the whole euro-zone, plus Russia.

High volatility: EURUSD, USDCAD, GBPUSD, USDCHF, EURRUB, USDRUB (suitable for news trading).

Moderate volatility: AUDUSD, EURCHF (suitable for trend trading).

The volatility of currency pairs during the European session
Daily trading range in points
The volatility of currency pairs during the European session

American session

Trading starts: 01:00 pm — 10:00 pm UTC

Countries: United States (New York, Chicago).

High volatility: EURUSD, USDCAD, GBPUSD, USDCHF (suitable for trading on news and short-term trades up to 15 minutes).

Moderate volatility: AUDUSD, EURCHF, USDJPY, Gold, Silver, Brent (suitable for trading on trends and trades from 15 to 180 minutes).

The volatility of currency pairs during the US session
Daily trading range in points
The volatility of currency pairs during the US session

Trading recommendations

The European and the American sessions are the most active as they directly affect the major currency pairs. One is also needs to know that there are certain trading days during the week when all the currencies tend to be highly active.

The table below shows the average range in pips for the main instruments for each day of the week.

Currency pair Sun Mon Tue Wed Thur Fri
EUR/USD 69 109 142 136 145 144
GBP/USD 73 149 172 152 169 179
USD/JPY 41 65 82 91 124 98
AUD/USD 58 84 144 99 115 111
NZD/USD 28 81 98 87 100 96
USD/CAD 43 93 112 106 120 125
USD/CHF 55 84 119 107 104 116
EUR/JPY 19 133 178 159 223 192
GBP/JPY 100 169 213 179 270 232
EUR/GBP 35 74 81 79 75 91
EUR/CHF 35 55 55 64 87 76

According to the table, the best trading time is probably the middle of the week, because the most powerful movements take place at that time. On Friday active fluctuations usually last until 0:00 pm UTC and then gradually slow down. Afterwards, stock exchange trading stops and the market is closed for the weekend.

Now you know the best time to trade on any asset and have the best chances to open a series of successful options trades.