Master the Exact Forex Trading Hours for Vietnamese Investors

In the world of forex trading, choosing the right trading hours can determine the success or failure of your strategy. The Forex market operates 24/7, but this does not mean that all hours are suitable for trading. This article will help you understand when the market has the highest liquidity and the best profit opportunities.

The Four Main Trading Sessions Worldwide

The Forex market is divided into four main trading sessions, corresponding to major financial centers around the world:

• Sydney Session (Australia): Opens from 5 AM - 2 PM Vietnam time (summer), 4 AM - 1 PM (winter)
• Tokyo Session (Asia): Opens from 6 AM - 3 PM Vietnam time (all year round)
• London Session (Europe): Opens from 2 PM - 11 PM Vietnam time (summer), 3 PM - 12 AM (winter)
• New York Session (North America): Opens from 7 PM - 4 AM next day (summer), 8 PM - 5 AM (winter)

Statistics show that the top four trading centers—London, New York, Singapore, and Hong Kong—account for up to 75% of global forex revenue. However, most traders do not participate in all four sessions but focus on the three main ones: Asia (Tokyo), Europe (London), and North America (New York).

Overlapping Periods Between Sessions

The most effective forex trading hours are when two or more sessions overlap. This is when liquidity increases and price volatility becomes more apparent.

Overlap between London and New York (19h - 23h Vietnam time)

This is considered the “golden hour” of the Forex market. When both London and New York are active, the two strongest currencies globally—USD (US Dollar) and EUR (Euro)—experience the most trading activity. Currency pairs containing these two currencies, such as EUR/USD, tend to have high volatility, creating numerous profit opportunities for traders.

Overlap between Sydney and Tokyo (6h - 1 PM Vietnam time)

Although this period does not generate as much volatility as the London/New York session, it still offers good opportunities, especially with currency pairs involving the Japanese Yen (JPY), such as EUR/JPY and GBP/JPY. These pairs often experience significant movement during this time.

Overlap between Tokyo and London (1 PM - 2 PM Vietnam time)

This is a short one-hour window, occurring at the end of the Asian session and the beginning of the European session. Trading activity during this hour is relatively limited compared to other sessions. However, JPY currency pairs can still present some opportunities, though trading volume will be lower.

Optimal Forex Trading Hours by Day of the Week

Not every day of the week is equally suitable for trading with the same expectations. Volatility and opportunities vary by day:

Monday: The market is usually quite quiet unless there are significant economic or political news releases. Average pip movement (measured in pips) is only half that of Tuesday to Thursday.

Tuesday to Thursday: These are the most active trading days, with high trading volume and clear price movements. Economic news is often released on these days, creating many opportunities.

Friday: The market tends to be lively in the first half of the day, then gradually quiets down as evening approaches. Many traders close their positions to avoid risks and prepare for the weekend, while also avoiding potentially adverse news that could occur over the weekend.

Summary of Optimal Trading Strategies

To maximize your forex trading hours, you should:

• Prioritize overlapping periods, especially 19h - 23h Vietnam time when London and New York are both active
• Trade on days from Tuesday to Thursday for higher volume
• Focus on currency pairs containing USD, EUR, and JPY, as they have the highest liquidity
• Consider risks on Friday and avoid holding positions over the weekend unless necessary

By understanding the optimal forex trading hours and the characteristics of each session, you will have a solid foundation to develop effective trading strategies and increase your profitability.