[PL89]

What are the typical hours for day trading? I know like the stock market has set hours, but how does it work for different assets like forex? Are there certain times that are better for liquidity and volatility?

Reply

Topic

[BTC Ben]

Crypto markets are open 24/7 baby! Late nights and weekends can be a bit slow mind you so brace for exaggerated price swings and big spreads.

Reply

[PL89]

Ok Ben, I’ve never day traded crypto before but good to know.

Reply

[BTC Ben]

Buckle up your seatbelt because she’s a bumpy ride! It’s not for the faint hearted or risk adverse!

Reply

[Steve]

US stock markets are generally open for trading between 9:30 AM and 4:00 PM (ET). Many people believe, me included, that the first 1 or 2 hours after open (9:30 AM to 11:30 AM ET), and the last hour before close (3:00 PM to 4:00 PM ET), are when there’s opportunities due to chunky trading volumes.

Fire up a platform and look at Nvidia as an example. You’ll see lots happens in the first hour and a half ish as momentum traders and institutions flood in.

I’d swerve lunchtime hours (11:30 AM to 2:00 PM ET) because you’ll see volume drops and you get choppy price action.

Reply

[PL89]

Great Steve, this is the kind of info I was after. Basically target efforts in a few hours at the start and end of the day.

Reply

[Liam]

Lots of people will tell you that you can day trade forex 24/5 but I wouldn’t. If you’re after volume and volatility, zero in on the overlaps of the key trading sessions:

London & New York Overlap (1:00 PM – 5:00 PM GMT): Most liquid and volatile period. Good for EUR/USD, USD/CAD, GBP/USD.

Tokyo & London Overlap (8:00 AM – 9:00 AM GMT): Less significant but can still offer opportunities. Good for USD/JPY, GBP/JPY, EUR/JPY.

Reply

[PL89]

Thanks Liam, similar to Steve’s comments it sounds like it’s best that I focus on those key windows and overlaps. A relief to know you don’t actually need to be at your desk for 12 hours.

Reply

[Author]

Replies