So, you were wondering when the best time to trade in the foreign exchange market is. The best time of the day to trade really depends on your continent’s specific hours. The European session begins at 7 a.m. and ends at 4 p.m. It is very dense and, most importantly, includes numerous financial markets. Banks, brokers, and market-makers in important centers make buying and selling currency possible. When deciding to place a trade, it is essential to get a good understanding of the ebb and flow of the market so that you can time your trades correctly.
Why the opening hours of the Forex markets are so important
Volume, as well as price, is a significant factor that helps fuel moves in assets. To put it simply, as a Forex trader, you need volume in the market to be able to execute trades. Absence of volume translates into absence of liquidity. Liquidity is the ability of a currency pair to be traded. If you are trading major currency pairs, you should better make sure that the market is exceptionally liquid.
The FX market is open all the time. Nevertheless, each day is divided into several sessions which comprises a set of hours, depending on the geographic location. London defines the parameters for the European session, which represents one of the most important economic and commercial centers in the world. Speaking of which, Italian Forex brokers give hope to the industry. It is not an FX trading hub, at least not for the time being.