Best Forex Market Hours To Trade in India

The foreign exchange market has a huge potential when it comes to trading and making a huge profit with relatively low effort. The volume of trading done in the forex market globally tunes to trillions of dollars, and such high numbers are reached on a daily basis. The potential of the forex trading market lies in the fact that it is open to the entire world, and trading can be done no matter where you are.

Forex Trading In India:

If you are residing in India, then the matter of forex trading poses some limitations. Forex online trading is not allowed in the country, however, you can still show off your trading skills with the help of authorized brokers who are certified by the Reserve Bank of India to conduct and facilitate forex trading.

Mistake Of Identifying The Right Time:

The bigger challenge lies in the subtler details, like nailing the right time to conduct your trading activities. Most people make the mistake of operating according to the timings of the international forex trading market. Whereas the Indian forex trading market operates on the basis of the Indian Standard Time (IST), rendering the assumptions made on the basis of other timezones, moot.
Forex trading markets are open all throughout the day, however, not all times are equally profitable. Choosing the best hours to trade forex is vital to ensure profits.

The Ideal Forex Trading Sessions:

All forex markets have the factor of liquidity in them. There are hours when the volatility of the market is quite prominent. On the other hand, volatility also dies down in specific hours of the market’s operation.

Forex trading becomes especially tricky if the ideal times are not understood. Some currency pairs exhibit what is known as carrying behavior, making the situation even more complicated. There are three forex trading sessions that people trade during. These are:

  1. Asian Session or the Tokyo Session: 05:30 AM to 11:30 AM IST
  2. North American Session or the New York Session: 07:00 PM to 1:30 AM IST
  3. European Session or the London Session: 01:00 PM to 10:00 PM IST

Tokyo Stock Exchange:

The Tokyo Stock Exchange opens at 05:30 AM IST and operates till 11:30 AM IST. On any given trading day, this market is the first to open to traders. The global market of forex trading begins with moving money from the Tokyo Stock Exchange. Indians will find the timing of this stock exchange to be very challenging to access, as they have to be very quick.
The Tokyo trading session accounts for as much as 6% of all forex trading that happens globally. This session bears even more fruit when it overlaps with the Frankfurt session. The Tokyo session is a significant session for forex online trading, as the economies of many countries in Asia depend on this very foreign exchange. Profits can also be made in the Tokyo session when it is overlapping with the London session.

New York Stock Exchange:

The New York Stock Exchange opens at 07:00 PM and operates till 1:30 AM IST. This stock exchange accounts for 16.6% of all forex trading across the globe. Being one of the largest forex trading exchanges, the North American market is quite volatile. It is highly affected by news and events from all across the globe. This is why it is a wise move to be in touch with international news before trading on this exchange. A high volume of trading occurs during the opening and closing of this exchange.

London Stock Exchange:

The London Stock Exchange opens at 01:00 PM and operates till 10:00 PM IST. This exchange accounts for as much as 34.1% of forex trading globally. It is also quite close to the German and Danish foreign exchange markets’ timings, which account for a further 7%. The timings of the London market is the most ideal for Indian forex traders. The fact that it has a high number of traders and is closely linked with the other two major markets only sweeten the deal. This market is also the trading ground for some of the most profitable currencies, making it ideal for Indian forex traders.

The Best Timings For Forex Trading / Forex Market Hours To Trade in India:

Judging from the above explanation, the best time to do forex trading would be during:
The Tokyo-London overlap is from 01:30 PM to 02:30 PM IST.
The New York-London overlap is from 05:30 PM to 08:30 PM IST.
September to December is the most profitable period for forex trading, followed by January to May. June to August is the period to avoid forex trading.

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