The Best Time to Trade Forex in East Africa

Forex is a marketplace for currency trading. One currency is exchanged for another according to what a trader thinks it will be worth in the future. How much a currency will cost tomorrow depends on many things, and it takes effort to predict where the price will go, even from a short-term perspective. However, one thing that can be predicted well is the time of the day when the currency pair price changes the most frequently. And this is the time when most of the traders open and close the most profitable trades. Read on to learn about the best time of the day to trade forex in East Africa.

The Best Time to Trade Forex in East Africa

The Best Time to Trade Forex

To begin with, you should understand the basic principles of the forex market operating hours:

  • The forex market is open round the clock five days a week. It enables you to trade at any time during the weekdays with the exclusion of certain holidays, e.g., Christmas. The market is closed on Saturday and Sunday as well.
  • Even though the FX market is open round the clock, as a trader, you are interested in trading when currencies are the most volatile. What is the point of staring at the screen and wasting your time when the currency price hardly moves? To profit from the price fluctuation, one needs the price to move up and down. So it’s better to adjust your schedule according to the most active trading hours.

    The Best Time to Trade Forex in East Africa
    High volatility
  • Because of the variety of time zones, trading activity is different in different parts of the world at a particular time of the day. Trading begins early in the morning in New Zealand and Australia, then Asian markets join in. As Europe wakes up, the major European financial centers like Zurich, Frankfurt, and London start to trade. Lastly, the trading activity gradually moves to North America.

    Read more: Forex Trading for Beginners in 2021

  • The fact that the market is open 24 hours a day doesn’t mean you should trade any time you want. The most active trading takes place during the overlap of the European and American sessions. Firstly, there is high volatility because large institutions exchange money during those hours. Second, the most important economic data is released at the same time. All these factors guarantee increased volatility in the market.
  • In case you trade a currency pair without the dollar in it, shift your trading schedule to the hours of another financial center. For example, the NZD/JPY currency pair might make you trade during the early hours of the morning when the Asian trading session is open. GBP/JPY is another major currency pair that might also trade better during the Asian and European sessions. So, mind your trading instrument when you choose time to trade.

High volatility provides you with better opportunities for profit, but it does not guarantee the profit itself.

Forex Trading in East Africa

East Africa (Kenya, Tanzania, Djibouti, Madagascar, Somalia, etc.) is in the GMT+3 time zone, which means that it is 3 hours ahead of London. Thus the favorable trading hours (the overlap of the European and American sessions) start in the afternoon in the East African time zone. The North American trading session opens at 3 pm, and the European session closes at 6 pm. Thus, roughly speaking, the most profitable time for trading (especially when it comes to EUR/USD and GBP/USD) is from 3 to 6 pm (GMT+3). You can see the detailed schedule for the major trading sessions below.

Area Opening (GMT+3) Closing (GMT+3)
New Zealand 9:00 pm 6:00 am
Sydney 3:00 am 10:00 am
Tokyo 3:00 am 12:00 noon
Hong-Kong and Singapore 4:00 am 12:00 noon
Frankfurt 9:00 am 5:00 pm
London 10:00 am 6:00 pm
New York 3:00 pm 12:00 midnight

Forex market open time in East Africa

Does the Success of Forex Trading Depend on Time of Trading?

One thing to remember is that high volatility provides you with better opportunities for profit, but it does not guarantee the profit itself. It is true that high activity in the market goes hand in hand with increased liquidity and volatility. However, if the strategy is flawed or mistakes are made, the volatility may play against you, and the trades may result in money loss. This is why no matter what time you trade, your success depends on a holistic analysis and a well-tested strategy. A well-organized trading schedule can only complement your results.

Read more: Is Forex Worth Investing In

The Best Time to Trade Forex in East Africa

Conclusions

Organizing an optimal trading schedule may increase your trading results. Most traders choose to trade during the most active trading hours. This approach is good because it guarantees them high liquidity and volatility, so crucial for positive trading results. The most active time of the forex market is considered the overlap of the European and American sessions starting at 3 pm East African time. However, other trading sessions can be interesting for those trading pairs that don’t include the American dollar.

About Justforex

Justforex is an international broker with clients from 197 countries. Millions of people have already opened trading accounts on Justforex to benefit from the best conditions, including low spreads, commission-free withdrawals, and a helpful team of support, working round the clock to ensure that each of our clients has the most convenient trading experience.

Open a demo account on Justforex to try your hand at currency trading. It’s a risk-free way to learn to trade in the most liquid financial market. A teaching account will help you learn the basics of FX trading and develop your own trading strategy before you invest any money. Learn trading today to take care of your future tomorrow.

FAQ

What is the best time to trade forex in East Africa?

Your trading time should be predetermined by a currency pair you want to trade. If you choose the EUR/USD currency pair, it’s recommended to trade from 3 p.m. to 6 p.m. EAT – the overlap of the North American and European trading sessions.

Is forex good for beginners?

As one of the most beginner-friendly industries – this market has a lot to offer. You can start trading using a demo account which is a risk-free way of improving your skills, and that’s where you’ll discover how the market works inside out. More experienced traders can open a standard account where it’s enough to deposit just $1 and start trading. In case you have some “knowledge gaps”, there are a lot of materials and recommendations available on the Internet. You can also visit our section of forex articles to find out more about FX.

What time does the forex market open in East Africa?

The forex market works 24 hours a day, 5 days a week in different parts of the world – from 12:00 a.m. EAT on Monday until 23:00 p.m. EAT on Friday.

Which forex session is open in East Africa now?

You can check the opening hours of each market following this link.

How long does it take to learn forex?

It may take up to 4 weeks (if you devote 8-9 hours a day) to learn the theoretical part of trading. It’s also advisable to open a demo account which is a great and risk-free way to combine the theoretical part with practical activities.

by Justforex, 2021.06.24

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