The Best Times to Trade UK Forex

The Best Times to Trade UK Forex

Description: This article looks at the times when UK forex traders should trade and what they should be trading.

If you are in the UK, forex trading times should be looked at. There are certain times when the market is at its best, and you should understand when these are in relation to your local time. UK forex traders should consider these times in Greenwich Mean Time. There are a number of reasons why you should consider trading only during these times.

UK Forex Market Times

UK forex traders need to consider when the peak market times are – not only for the UK but for other countries as well. These times represent when traders from the different countries are most active on the forex market.

  • The UK has a forex market time of 8 am to 5 pm GMT.
  • America has a forex market time of 1 pm to 10 pm GMT. This is related to the New York market times.
  • Australia has a market time of 10 pm to 7 am GMT. This is related to the market times of Sydney.
  • Japan has a market time of 12 am to 9 am GMT. This relates to the market times of Tokyo.

Why you Need to Know This?

You may be wondering why exactly you should know about the market times; after all, the forex market is a 24-hour one. While the forex market might run all the time, there are certain times when it is at the most liquid, and trades will make the most profit. These times are not during certain market hours, but rather in the times when the markets overlap.

As a UK forex trader you need to know when these markets overlap in your local time. During these overlap periods, the highest number of trades will be completed. These times are also when the market will swing the most because of the high volume of trades.

When are the Overlap Periods?

The overlap periods occur three times every day. Some of these overlap times are not that convenient for most UK forex traders, but you should be aware of them anyway.

  • 12 am to 6 am GMT is when the Australian and Japanese markets will overlap.
  • 8 am GMT is the one hour when the Japanese and UK markets will overlap.
  • 1 pm to 4 pm GMT is when the UK market and the American market will overlap.

During these three times, the market will be at its peak. It should be noted that the overlap of the UK and American markets are when the most trades will actually be completed. This is seen as the best time to trade by everyone around the world.

What should You be Trading?

During these overlapping times you should consider trading in certain currency pairs. The currency pairs that you look at should be the ones which relate to the markets that are open. During the UK/USA overlap you should look at currency pairs with the US dollar, GB pound or any of the European currencies. When the AUS/Japan overlap takes place you should look at trades with the AUS dollar or the New Zealand dollar.


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