Best Time for Trading
There are Best Time for Indices that prices will move more because there's a lot of transactions volume & these market hours are the best to trade. So before looking at these Best Time for Trading & what makes them the best trading hours let us look at the individual hours which when combined make the Best Time for Trading.
The 3 biggest economies in the world are
US
Japan
UK
EuroZone though not a single economy, market time is same as that of the United Kingdom, so UK will represent EuroZone & UK.
Asia Best Time for Trading
The Asian Best Time for Indices start from 1:00 to 9:00 GMT. Asian market time session will take in to account the times when the Asian stock markets are open, same time when major Asian Banks are open for trading & carrying out transactions.
UK Best Time for Trading
This is the time when stocks markets in the London and EUR Zone are open for Trading. Big banks & financial centers in these capitals are also open & major volumes of trades are carried out so as to settle international trade deals.
USA Best Time for Trading
America is the financial capital of the world, the USA Best Time for Indices move highest volumes in terms of stock trade transactions & International trade deals. This make the US market hours the best time to trade.
Best Time for Overlap
What is Best Time for Overlap? These are the hours when 2 financial centers are both open at same time. For Example
- Asian and UK Markets Best Time for Overlap - 8:00 to 10:00 GMT
- London & USA Markets Hours Overlap - 13:00 to 18:00 GMT
These are the hours when most transaction volumes are carried out and the total trade transactions placed are more than any other time in the trading market.
Therefore combining these two market sessions as a trader you want to open your trades within these best market hours.
Best Time for Trading
Asian(Partly) and European & US Overlap - 8:00 to 18:00 GMT
This gives traders a total of 10 trading hours that are the most volatile. To ascertain this hours in your GMT local time just add or minus the GMT time zone of your country depending on your time-zone from the above market hours.