PDA

View Full Version : What Are the Best Times to Trade for Individual Currency Pairs?



oussama94
05-29-2017, 00:30
T he foreign exchange market operates 24 hours a day and as a result
it is impossible for a trader to track every single market movement
and make an immediate response at all times. Timing is everything in
currency trading. In order to devise an effective and time-efficient investment
strategy, it is important to note the amount of market activity around
the clock in order to maximize the number of trading opportunities during
a trader’s own market hours. Besides liquidity, a currency pair’s trading
range is also heavily dependent on geographical location and macroeconomic
factors. Knowing what time of day a currency pair has the widest
or narrowest trading range will undoubtedly help traders improve their investment
utility due to better ******* allocation. This chapter outlines the
typical trading activity of major currency pairs in different time zones to
see when they are the most volatile. Table 5.1 tabulates the average pip
range for the different currency pairs during various time frames between
2002 and 2004