01/11/ · Before you begin trading currency pairs at night, you will need to take into consideration your trading plan, which should include decisions about how many hours you want to follow and monitor the market, as well as your appetite for risk. It is also important to define your forex trading strategy. A popular one for night trading is scalping as it is focused on short timeframes and small market Estimated Reading Time: 8 mins 11/06/ · As mentioned above, the forex market is open 24/5. Depending on where you are trading from and which currency pair you are trading with, it is important to consider the relative time of day/night. Popular Currency Pairs in the Forex Market. You can trade a wide range of currency pairs in the forex market 20/07/ · For those looking for more volatility, the best forex pairs to trade at night are cross-pairs which involve an Asian-based currency such as the AUD/NZD, AUD/JPY or NZD/JPY
Best Currency Pairs to Trade at Night in the UK | IG UK
As night occurs at different times around the world, night trading can refer to any of the three major currency markets —Asia, North America, Europe — depending on where you are located. Due to the fact that the vast majority 80 per cent of currency trading occurs on the North American and European markets, night trading typically refers to the Asian currency markets. Asian currency traders will sometimes refer to themselves as night traders if they trade during the day in their home country as the hours between the US market closing and European markets opening is globally known as the after-hours or night session.
As mentioned, night trading can refer to different markets depending on the trader, but we will look at the UK for this explanation. In the UK night trading would refer to trading that occurs on Asian markets between the close of US markets and the re-opening of European markets the following day.
Below are a few factors to consider for each pair. Owing to their geography both countries are highly dependent on China purchasing commodities for their economic success, but they are not always viewed in a similar light. In this pair it is crucial to monitor global commodity prices but also the intergovernmental relations between both countries and China. The yen is intricately tied to the US economy in manufacturing of technology and as a service provider. The yen will typically move in the same what are the night pairs in forex trading as the USD while the Australian economy is based on commodities and heavily influenced by Chinese economic data as well as the USD.
There are multiple reasons that trading at night can be beneficial. One factor to consider is that some of the best currency pairs to trade at night can have a smaller margin requirement than some of the pairs most active during North American and European sessions.
Strategies that involve capitalising on small price movements such as scalping and automatic trading programmes also perform better in Asian markets. As there is less activity there is less chance of missing a trade on a small fluctuation. Those looking to employ longer term strategies may also benefit from early entry by trading at night. If there what are the night pairs in forex trading a major economic announcement coming out of the USA the following day that what are the night pairs in forex trading trader feels will have a significant and long-term effect on a currency pair they can gain a first mover advantage by trading on Asian markets the night before.
As it is possible to trade all currency pairs at night this question really comes down to the individual risk-tolerance of the trader and the strategy that you are using. Trading forex at night presents what are the night pairs in forex trading excellent opportunity for both long-term investment strategies as well as short term strategies like scalping.
For beginners, the best forex pairs to trade at night are the major pairs. These pairs will tend to be less active and thus less volatile at night, particularly if they do not involve an Asian currency. Experienced traders may seek out these currency pairs at night to employ a scalping strategy by capitalising on small fluctuations in price movements to make profits.
Strategies which work better with less volatility, such as scalping or automatic trading programmes, will tend to favour night trading.
As these countries are operating at regular business hours during the UK night session, they will experience fluctuation based on economic news coming out of the region, what are the night pairs in forex trading.
Trading at night can also allow you to profit from retracement of any gains or losses in currency pairs accumulated in the US and European markets as it is normal to see pull back of any large movements during night trading. While it is a general rule that Asian currency markets are less volatile than European and North American there are exceptions. Major economic announcements scheduled in large Asian economies such as China or Australia can have a major impact on multiple currency pairs over the nighttime session.
Specifically, what are the night pairs in forex trading, as the factory of the world, manufacturing data from China can impact all global currencies in either a positive or negative way. Central bank announcements from countries such as New Zealand or Japan can cause sudden fluctuations in the price.
The Australian dollar can be the best currency to trade at night but as a commodity currency requires careful review of the US dollar as almost all commodities are priced in USD.
There may also be unexpected movements based on interconnected geopolitical factors, such as the ongoing trade war between the US and China. Tariff or sanction announcements during the day could decrease demand for Chinese manufacturing and concurrently the demand for Australian commodities by the Chinese, affecting currency pairs involving the AUD. Traders should also be aware that many forex platforms will, by necessity, have larger buy-to-sell spreads on most currency pairs during the night.
This is due to lower liquidity levels caused by a lower volume of transactions. Follow the latest forex news, choose your favourite currency pairs to trade at night and track their live rates with Capital. Indices Forex Commodities Cryptocurrencies Shares. MicroSectors U. Big Oil Index -3X Inverse Leveraged ETNs.
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What's the Best Time to Trade Forex? - 3 Major Market Sessions ��
, time: 10:10Best Currency Pairs to Trade at Night in the UK | IG EN
20/04/ · Check Out: Top 10 Forex Pairs To Trade. Conclusion. The general rule for night trade is that Asian forex markets are less volatile than European and North American ones. Major economic announcements in the larger Asian economies like China might have a major impact on multiple currency pairs involved in night trade 01/11/ · Before you begin trading currency pairs at night, you will need to take into consideration your trading plan, which should include decisions about how many hours you want to follow and monitor the market, as well as your appetite for risk. It is also important to define your forex trading strategy. A popular one for night trading is scalping as it is focused on short timeframes and small market Estimated Reading Time: 8 mins 08/04/ · However, this article intends to provide a guide for picking Forex pairs to trade at night. What Are Forex Night Trading Hours? As mentioned earlier, the trading night hours are different for each trader. However, in general terms, traders refer to the Asian session to trade night hours. Even traders living in Asia refer to the Asian session as “trading at night,” due to the lack of volatility in the
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