There is this great quote by Benjamin Franklin which states that, “You may delay, but time does not”. How true is it when you apply it to Currency Trading?

The Forex Market operates on a 24 hour clock basis. However, a skilled trader knows the prime time where he/she can capitalize on to make maximum profits.

The regular hours are also other times when you can make profits, but dear trader, we are talking of MAXIMUM PROFITS HERE, you wouldn’t want to miss out on that; as Benjamin would have it, just delay but time wont.

There are three major trading sessions in Trade Forex.

Trading Time in Asia

It starts at 6.00pm and ends at 4.00am EST. It includes both Australia and New Zealand. At 7.00pm, the trading session in Tokyo begins.

It is important to note that Tokyo is the power house in Asia in terms of currency trading online. In the world, it is the 3^rd largest Forex Trading center.

In all the trades that take place during the trading session, averagely 20% of the transactions involve the yen. And, close to the same percentage represents all the forex transactions taking place during the session.

Have you ever been to Tokyo, Sydney, Hong Kong or Singapore? Maybe you were there as a tourist but if it was a business trip, you’ll have noticed that these are the financial heavyweights of Currency Trading Online during the Prime Time Trading in Asia.

Due to the fact that the Prime Time window is just one hour in Asia, liquidity is usually shallow. It is for this reason that most traders opt to undertake their Forex exchange activities during the New York and London Prime time, which is usually a window of 4 straight hours.

Trading Time in London

Forex trading in London starts from 3.00am and ends at 12.00 noon EST. Note that as trading sessions in Asia come to a halt is when London Trading Time shifts into gear. Typically 30% of all Forex trade takes place during this trading session.

Something that should ignite you as a trader is the fact that London Trading Time overlaps with both the Trading Times in New York and Asia.

It is therefore the best time to trade Forex. During this session, liquidity is at its peak and the cost of transacting currency pairs is low.

Considering that it is during this session that most transactions take place, the Forex market is highly volatile. Actually, this is good for business.

Here, you are looking at the basic price data in online Forex, instead of other tertiary factors that may lower the profit margins.

Trading Time in New York

Oh my! Gotham City as R. Kelly calls it; the city of love, city of peace, but he somehow forgot to include city of Forex trading. The reason why I speak of Gotham city with such passion is because 85% of Forex Trades involve the U.S Dollar.

Any currency that is paired with the U.S Dollar has a high possibility of making big returns. Trading time starts at 8.00am and ends at 5.00pm EST. the closing time during New York Trading session is key because it brings to an end the currency trading online.

In conjunction with this closing time, you as a trader should watch out for the New York Close session charts.

The Prime Hours

These are the hours when Forex Trading is at its peak. This means that at this time, the Forex market is highly volatile; that is, trades are being made. The market is on the move simply to say.

Simply put, in each session of Fx exchange, there is a time that two trading sessions are taking place at the same time. That is;

1. The overlap in the Asian and the London trading times; 4.00am to 3.00am EST.
2. The overlap in the London and the New York trading times, 8.00am to 12.00 noon.

The times when these trading sessions overlap is when currency trading and volatility shoots to its peak.

The best times to trade forex is during the overlap of the trading sessions. Particularly, during the overlap of the London and the New York sessions, the four-hour window is long enough for trading.

And, the two overlapping sessions take place in the most hyperactive trade forex centers on earth.

Currency Pairs to Trade

As a Forex exchange trader, it’s not enough for you to time the Prime Hours to trade. Knowing which currency pairs to trade will give you what you really need; that is, maximum profits.

The currency pairs are classified into three basic categories.

Majors

Any currency that is paired with the U.S Dollar form a major currency. These include the euro, British pound, Australian dollar, New Zealand dollar, Japanese yen, Swiss franc and the Canadian dollar, all paired with the U.S Dollar.

Crosses

These are currency trades that are not paired with the U.S Dollar; for example, the Australian dollar against the Japanese yen and the Euro versus the Swiss Franc.

Exotics

These pairs are comprised of currency pairs that come from developing countries. Some of them include the U.S Dollar against the Mexican peso and the Euro versus the Turkish lira.

It is not advisable to start with the exotics because you cannot compare their profit margins with those of the majors. You will be engaging in a more risky trade, considering that they are of low liquidity.

Take my word on this: to be a successful online Forex trader, ignore the exotics and venture strongly in the majors.

Summary

As an online Forex trader, you will have to be keen when it comes to currency trading. Be an opportunity grabber when the window of Prime Hours comes to view.

Watch out for those precious moments when different prime trading times for different continents overlap.

You will be able to make the best of the Forex market when it is most active through maximizing your profits.