What's the Best Time to Trade Index?

Timing is one thing that will ascertain your success in the trading market and that's why it's essential to find the best time to trade Indices the best time with regards to activity and volume of stock trades. This is what we call volatility, when the trading market is volatile it is more liquid.

When is the best time to trade Indices? The most prominent time is undoubtedly the US & the UK market sessions, trading accounting for more than half of the total trade turnover transactions.

If it comes to major sessions: London, New York & Tokyo take up 75 % of market activities. And transactions volume is the heaviest when the major markets sessions over-lap, this is the best time to trade.

Index sessions overlaps are characterized by high liquidity and the probability of finding a profitable trade is very high. This is because the volume of transactions is determined by the number of markets that are open and the times during which they overlap with each other.

Best Time to Trade Based Upon Volume and Activity

The best time is when sessions over-lap this is the time when the markets are highly liquid because there are more market participants, which means more volume and force to fuel trends and trend breakouts. This also will tend to be when economic data is released, providing the triggers for the movements in trading indices.

European & U.S. Market Over-lap: 13:00 & 17:00 GMT

The market is the most active when the 2 trading largest centers in the globe overlap. 80 percent of the overall total average usually and generally occurs during US and European hours. Just these percents alone tell day traders that they can not sit in front of the screen all day: this time alone is enough to make a good profit, the best trading time - the US and European over-lap which's between 13:00 & 17:00 GMT.

Asian and European Market Overlap: 7:00 - 9:00 GMT

The next best time to transaction Indices is during the Tokyo and European Session overlap when both the Asian and European traders have the opportunity to respond to the European economic data. The London open also is volatile as European traders usually react to the overnight developments.

These times when the market sessions overlap is the time you've to target to earn profits, it is the best time for trading on the trading markets.

THE ABSOLUTE BEST TIME FOR Indices TRADING IS FROM 7:00 TO 17:00 GMT.

The best time for trading is 7:00 to 17:00 GMT, this is because the volatility is much higher and opportunities for earning a profit are more frequent with bigger and larger market moves, especially in these 10 hours. This is when you as a stock indices trader can make 50-80 pips Profit.

News Releases / Economic Information Reports Announcements23:50 GMT Japan Fundamentals 07:45 GMT Europe Fundamentals 13:30 GMT USA Economic Figures

During Summer Time these news info reports release times are 1 hour earlier due to day-light saving hour.

Best Days

Although the online market is open on all these 5 business days there are certain days that are considered and regarded as the best days and during these days will give you the best market trading time.

If you as a trader want the best time and the best days to trade, then statistics shows that Tuesday, Wednesday & Thursday are the best days since the max number of trades happen during these weekdays.

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