Although your success as a trader greatly depends on your skills, it can’t be denied that timing matters too, and trading hours in particular. In fact, timing is especially important if you want to trade currency pairs on Binomo.
Regardless of the type of derivative, timing is vital if you really want to make money by trading. First of all, you have to take a note of the different opening hours of the four major trading markets: New York, London, Tokyo, and Sydney. Each of these markets has a different opening time depending on the associated timezone.
How to choose perfect trading hours on Binomo?
Honestly, it’s impossible to answer this question without knowing your personal circumstances as a trader. Simply put, the answer depends on different factors, such as your preferred currency pair and your geographical timezone.
However, you do need to have good timing if you really want to benefit from the right market conditions. Knowing when a particular market opens is also very helpful, since it assists in managing your schedule better. Your personal preference matters greatly too. For instance, if you like trading in volatile markets, you have to see which currency markets have those specific trading windows in your preferred time. Meanwhile, if you like ranging markets better so that you can enter short positions, you can also easily predict the right time windows for those situations.
In this guide, we’ll help you determine which trading hours on Binomo suits you best. Keep in mind that we are assuming the GMT+0 (London) timezone for this guide.
When do the four major currency markets open?
One important thing you have to remember is that all markets are open for 9 hours each day, 5 days a week. Due to different timezones, this means that markets are technically open all day long, which gives traders plenty of opportunities to make money doing trades.
As you can see in the table below, the Sydney market overlaps with the Tokyo market, while the London market overlaps with both the Tokyo and New York markets.
Tokyo session: 11PM to 7AM GMT
New York session: 12PM to 9PM GMT
BONUS: Here on Binomo, we’ve got a really cool tool called the Currency Market Hours Overlaps, which can help you determine the best time to trade your chosen currency pairs based on your specific timezone.
What are the perfect trading hours for you?
As mentioned above, there is no exact answer to this question, since it varies greatly from trader to trader. Our advice to you would be to first determine the hours that you best prefer trading in general and start from there.
Here are some of the top currency pairs for different trading hours.
Preferred trading hours: morning to noon (5 AM to 12 PM)
Highly volatile currency pairs: NZD/USD, EUR/JPY, GBP/USD
Volatile currency pairs: USD/JPY, USD/CHF, USD/CAD
Preferred trading hours: afternoon to early evening (12 PM to 7 PM)
Highly volatile currency pairs: USD/CAD, USD/JPY, USD/CHF, GBP/USD, GBP/JPY, EUR/JPY, EUR/USD, EUR/GBP
Volatile currency pairs: AUD/USD, NZD/USD
Preferred trading hours: late evening to early morning (7 PM to 5 AM)
Highly volatile currency pairs: AUD/USD
Volatile currency pairs: USD/JPY, USD/CHF, USD/CAD, EUR/USD, EUR/GBP, EUR/JPY, GBP/USD, GBP/JPY, NZD/USD
In the charts below, you can see the different currency pairs and their volatility during specific trading hours.
In conclusion, if you really want to make money trading currency pairs, you have to know which specific trading hours best suit your personal trading strategy. If you’re more of a morning trader, for example, you should probably try checking out currency pairs that are highly volatile during the 5 AM to 12 PM trading hours.
We hope our guide helped you find the perfect trading hours for you! Remember, you can always open a free practice account on Binomo so you can start applying these skills today.
Good luck on your trading journey!