That is why we decided to determine what types all currencies are divided into and which type is best suited for beginners in Forex trading. Pay attention to trading ranges and breakouts day trading penny stocks strategies in case of low volatility. The USD is the abbreviation for the U.S. dollar, the official currency of the United States of America and the world’s primary reserve currency.

The New York session has the biggest overlap with the London session, and so it is a good time to trade forex in the UK, especially the GBP/USD cross. It is important to remember that forex trading hours can vary in March, April, October and November, as countries shift to and from daylight savings or summer times on different days. The most profitable currency pairs are those with high volatility. EUR/USD is the easiest and the most stable currency pair to trade. This pair is the best choice not only among beginners but also for professional traders. Due to tight spreads and liquidity, EUR/USD is the most traded currency pair.

Why is London Session good to trade?

The London session provides a more profitable trading period making it the best option for both professionals and beginners. The trading volume is usually high with a lot of buying and selling. Therefore, the spreads will be lower, giving you less consolidation and increased opportunities to capitalize.

Your watchlist should contain currency pairs that possess desirable characteristics. Of course, there isn’t a hard and fast rule about this because you need to choose the characteristics that work best for you. Opportunities lie in a significant movement caused by reports, breaking news or a major trend getting stronger or overturned. All these drivers happen during specific country/currency daytime. Essentially, opportunities lie in a significant price movement caused by reports, breaking news or a major trend getting stronger or overturned. So, by all means, mingle in major pairs, pick a few, and practice your way into minor and exotic pairs, and only then try taking on more than 30 pairs.

Forex market Hours

You can try trading the exotic currencies if you do not live in the USA, Canada, or Europe and have some insights from the local markets. The most recommended option is to trade local currency against the USD and vice versa. For example, if a local government plans to sign a new bill to impact the local currency rate, you can use this information in trading. International currency markets operate in multiple time zones and can be easily accessed at any time.

Which pairs move the most Pips?

The most volatile major currency pairs are: AUD/JPY (Australian Dollar/Japanese Yen) NZD/JPY (New Zealand Dollar/Japanese Yen) AUD/USD (Australian Dollar/US Dollar)

Get tight spreads, no hidden fees and access to 12,000 instruments. This report offers data on the balance of imports and exports in the United States, which carries big implications for USD and other related currencies. Like many other investments, you can earn significant profits, but you could also suffer losses. As you can see, the historical hourly trade activity increases during the London session up until it overlaps with the New York session.

Useful Forex News and Economic Report Resources

No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. The Tokyo session is perhaps the least liquid of the major sessions to trade forex from the UK because of the time difference and the limited cross over of only one hour between London and Tokyo.

How many pairs should I trade?

A good rule of thumb for traders new to the market is to focus on one or two currency pairs. Generally, traders will choose to trade the EUR/USD or USD/JPY because there is so much information and resources available about the underlying economies. Not surprisingly, these two pairs make up much of global daily volume.

However, there are different trading sessions with different levels of volatility and liquidity across all pairs. If you’re trading the London and New York sessions, then major pairs, CAD and CHF pairs, will be volatile. In the Asian session, JPY, NZD, and AUD pairs are usually more volatile than others. In some cases, forex traders prefer to trade on currency pairs with a lower or tighter spread as it reduces the overall costs involved in the trade. However, some traders prefer to trade on volatile currency pairs with wider spreads and lower liquidity in an attempt to profit from the fluctuating gaps in price. The most traded currencies in the world come from multiple continents and they belong to some of the strongest economies.


The most active trading occurs after the important Swiss or EU financial news, like the unemployment rate or CPI. To get the maximum possible profit, spending less and earning more is necessary. In the forex market, the number of closed-won deals should exceed the number of close-lost trades, and/or the total balance should be positive. Let us start with the fact that every forex trader dreams about a profit. Forex trading is a business like manufacturing, retail trading, or delivery service.

Just when Asian market participants are starting to close shop, their European counterparts are just beginning their day. The two currencies are closely related to one another which means the value of one influences the value of the other currency. Mastering this balance will allow you to create some peace of mind for yourself because you’ll know, at all times, when the best time to make your next move will be. It is essential that you learn to focus and narrow your view on the news releases that are relevant to you, as opposed to those that will just serve as distractions.

A trader here needs to open a Forex trading account with a broker, and trading is active from 9 am to 5 pm. The trading pair is XAU/USD, so wherever you see the name, you can buy and sell it — and make a profit. Forex market hours refers to the specified period of time when participants are able to transact in the foreign exchange market.

How does forex trading work?

When more than one of the four markets are open simultaneously, there will be a heightened trading atmosphere, which means there will be more significant fluctuation in currency pairs. The table below has information about some popular forex pairs and their average daily pip movement over a 12-month period starting November 2018 during the London session. Forex market hours are derived from different geographical trading sessions, meaning you can trade forex around the clock.

best pairs to trade during london session

This will also influence the open and closing times of the respective trading sessions. While AvaTrade notifies traders of changes in different open/closing times, it is important to note that due to DST, there will be changes in market hours in March, April, October, and November. Number one in the world and at least 20% of all forex market trading by volume.

While has some data verified, it can vary from time to time. Operating as an online business, this site may be compensated through third party advertisers in the term of commission. Our receipt of such compensation shall not be construed as an endorsement or recommendation by, nor shall it bias our reviews.

With higher activity, trading spreads, or the differences between bid prices and ask prices, tend to narrow. At these times, less money goes to the market makers facilitating currency trades, which means traders can pocket more. Sometimes the list of the major currency pairs can be extended with the so-called “commodity currencies.” Commodity currencies are the Australian dollar, Canadian dollar, and New Zealand dollar. The national economies behind these currencies depend on the commodity prices — gold, silver, oil, bauxites, etc.

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