These Are the Best Hours to Trade the British Pound
Time is paramount for forex trading; forex market exhibits recurrent cycles during the year in which the currency quotes tend to be higher or lower periodically. Knowing these periods increases the profit potential for forex traders. The same cycle principle can be observed during the day and the week. The forex markets have different times zones, for this reason, you can trade at any hour since a forex market must be open somewhere on the globe. Virtually you can trade forex 24 hours seven days a week since the time zones differences can be up to 18 hours if you are living in California and do forex trade on British Pound in Sidney, it is useful to know the best hour to trade GBP.
The best hours to trade British Pound are described based on the number of traders and the volume of transactions made at that moment. It is found when the New York Stock Exchange and (NYSE) and the London Stock Exchange (LSE) operation hours coincide, or booth market are open for business simultaneously. The UTC or GMT from 14:30 to 16:00 during the British summer time and -1 hour (-1h) during the British wintertime. This schedule is better for those who are trading GBP/USD.
- Best hour to Sell GBP/USD 08:00 to 10:00 GMT UTC (+1 During British summer time)
- Best hour to buy GPB/USD 15:00 to 16:00 GMT UTC (+1 During British summer time)
The forex trade in these markets can take place only when they are open for business. However, due to the massive amount of money traded in both currency per day. It is common for brokers use extended hours trading; they do forex trading while these markets are closed. The extended hours trading allows trader and brokers to take advantages of any information they might have and put their order before the business hours of the forex market increasing their profit potential or reducing their loses when the exchange rate price will drops against their estimations.
The best-extended hours to trade British Pound is from 06:00 to 08:00 GMT (+1h during British summer time). The two hours before the opening for business of the London Stock Exchange are the best to profit during the extended trading to maximize your profits and handle the associated fees better if you have any information, which can give you an edge.
The best time to trade British Pound with any other currency different from the USD
- 03:00 to 06:00 GMT (+1h during British summer time).
No matter if you are trading GBP/AUD or GBP/YEN, or GBP/CAD the price volatility is lower during these hours, and professional forex traders place their order at this time to maximize their profits. It may looks odd but this is a convenient hour for the Asian-Pacific forex market which trade billions of GBP daily, but they have accommodate their trading hours to the LSE or the London time historically and even now they continue doing it. The Asian-Pacific markets including Australia exhibits lower exchange rate variation at others hours.
The extended trading hours for the Asian-Pacific markets
- 12:00 to 15:00 GMT (+1h during British summer time).
These hours are LSE operating hours and the afternoon is better for the Asian-Pacific major currencies exchange rates.