When it comes to forex trading, timing is everything. Picking the right time to trade can potentially increase your chances of being successful in the market and making a profit. Conversely, picking a bad time can lower your chances of success.

What are the Worst Times to Trade Forex in the UK?

In forex trading, ‘worst’ may be a subjective term. However, when traders talk about optimal times for trading, usually they are referring to times of high market liquidity and low volatility. Sub-optimal times are therefore moments when liquidity is low and volatility is high.

Firstly consider the time zone. The United Kingdom is in the GMT zone, five hours ahead of New York (EST). When it is 8 am in the UK, it is only 3 am in New York. It can be a problem for forex traders, as the US markets are open during UK working hours, meaning a high chance of volatility during this period.

Another thing to consider is the British summertime. From the end of March to October, the UK is one hour ahead of GMT. It can again cause problems for forex traders, as it can be difficult to trade during this period.

The best times to trade forex in the UK are typical during the London session (9 am-5 pm GMT) and the New York session (8 am-4 pm EST). These are the times when a tremendous amount of people are trading, and therefore there is more liquidity in the market.

There are still things to consider when trading during these times. For example, if you are trading during the London session, you need to be aware of any major news announcements that could impact the market. Similarly, if you are trading during the New York session, you need to be aware of any major news announcements that could impact the market.

The next thing to consider is the UK’s economic calendar. All of these events on the economic calendar could significantly impact the pound’s value, and they are all scheduled to take place during UK working hours.

Another thing to consider is the US economic calendar. All of these events on the economic calendar could have a significant impact on the value of the US dollar, and they are all scheduled to take place during US working hours. It means there might be a high chance of volatility during this period.

What is Forex Trading in the UK?

Fx trading in the UK is all about buying and selling foreign currencies. The UK is a significant player in the forex market, and its currency, the pound sterling, is one of the most traded currencies in the world.

The UK’s currency is also known as cable, and this term comes from the days when telegraph cables were used to send messages between London and New York. These days, forex traders use electronic networks to trade currencies. The fx market is decentralised, meaning that there is no central exchange where all trades take place. Instead, trades are conducted between two parties over-the-counter (OTC).

What is Volatility?

Volatility measures how much the price of a security, commodity or currency pair moves up and down. The higher the volatility, the greater the price movement will be. High levels of volatility can be risky for traders, as they can lead to considerable losses if the market moves against them.

What are Stop-Loss Orders?

It’s an order placed with a broker to sell a security when it reaches a specific price. It is done to limit losses if the price of the security falls. Stop-loss orders are fundamental during periods of high volatility, as they can help protect your capital from significant losses.

What are the Best Times to Trade Forex in the UK?

The best times to trade forex is any time when there is high liquidity in the market. It typically includes the London session (9 am-5 pm GMT) and the New York session (8 am-4 pm EST).

If you are unsure of what you can trade and how to place trades, you can see this website for more information on the types of forex products and trading methods available for British traders.