Why Make an FX Schedule?
Many forex beginners dive in thinking this will be a lot like Wall Street. However, trading on Wall Street means you only have to worry about one country’s schedule.
However, forex trading involves all corners of the world, each of which has their own business hours, time zones, and so on. Without creating a schedule of solid trading times, you’ll miss out on big potential moves.
Keep reading to discover how to create your own schedule!
Know the Market Times
Those different parts of the world we mentioned earlier? You’ll need to know what their hours of operation are.
New York, as you might imagine, operates from 8:00 am to 5:00 pm Eastern Standard Time. Tokyo, by contrast, is open from 7:00 pm to 4:00 am EST.
Sydney is open from 5:00 am to 2:00 pm EST. Meanwhile, the UK is open from 3:00 am to 12:00 pm EST.
Keep in mind that the forex market opens at 6:00 pm EST on Sunday and closes at 5:00 pm on Friday.
Importance of Overlap
Now that you know what the different trading times are for different parts of the world, you can begin creating a FX schedule. That means focusing on overlapping times.
The whole principle of forex is built on exchanging currencies from different countries. Therefore, the best times to trade will be when these countries’ trading times are overlapping.
Two of the overlaps are very brief. Sydney and Tokyo overlap between 2:00 am and 4:00 am EST, and London and Tokyo overlap between 3:00 am and 4:00 am EST.
One of the larger overlap windows is the US and London, which overlap between 8:00 am and 12:00 pm EST. In addition to the longer overlap, this time period is popular due to favorable exchanges between the US dollar and the Euro.
You Can’t Plan for Everything
So far, we’ve focused on the general wisdom you can use from week to week and month to month. In this way, you can develop a successful FX schedule.
However, there are certain things that impact forex volatility. And while these are things you can’t be completely prepared for, you can at least be aware they might happen.
Basically, any major economic news has the possibility of energizing a time slot that is normally slow. When there is major news about any given country’s economy, especially when it upsets market forecasters, this will cause a flurry of trading activity.
At this point, the traditional schedule is out the window. Use your instincts and strike while the iron is hot!
The Bottom Line
You now know how important an FX schedule really is. But do you know where to get the latest data to create your own schedule?
At RedHotFX, we bring you the latest news about forex and forex signal providers, all for free.