Choosing the Optimal Forex Trading Timing for Vietnamese Traders

To achieve the highest trading performance, understanding the forex trading sessions and identifying periods of high volatility are key factors. This article will help you analyze each session in detail and determine the most suitable trading times according to the working schedule of a trader in Vietnam.

How the Global Forex Market Operates

Although the Forex market operates continuously 24 hours a day, not all times are ideal for trading. The simple reason is that there are certain time frames when the market is very active with high trading volume, and others when the market is quiet, making it difficult to find significant profit opportunities.

The foreign exchange market is divided into four main trading sessions worldwide:

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

The top four trading centers—London, New York, Singapore, and Hong Kong—account for 75% of global forex revenue. However, many professional traders often focus on the three main sessions (Asia, Europe, America) instead of trying to monitor all four, a method known as the “3-session trading system.”

Identifying Overlapping Forex Trading Sessions

The time when two forex trading sessions open simultaneously often creates the most attractive trading opportunities, due to the overlap of trading volumes from two different markets.

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

This period is considered the “golden” time for forex traders. When these two major markets operate concurrently, currency pairs involving USD and EUR (the two strongest currencies in the world) experience the highest volatility. This generates enormous trading volume and many profit opportunities. Most Vietnamese traders can participate during this time, as it aligns with a normal working schedule.

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

The Asian-Australian forex trading sessions do not produce as much volatility as London-New York, but still offer significant profit opportunities. Currency pairs containing JPY (Japanese Yen) such as EUR/JPY and GBP/JPY tend to show high volatility during this period.

###Tokyo - London Overlap (1 PM - 2 PM Vietnam time)

The overlap between Tokyo and London sessions lasts only about 1 hour, marking the end of the Asian session and the start of the European session. Therefore, trading activity during this period is less significant. However, EUR/JPY and GBP/JPY are still important pairs to monitor during this time.

Most Effective Trading Days of the Week

Not all days of the week have the same market volatility. When there are no major economic or political events, Monday is usually a relatively quiet day, with pip movements about 50% of those on Tuesday, Wednesday, and Thursday.

On Friday, the first half of the trading session is often lively, but the afternoon tends to be calmer as most traders close their positions to avoid risk over the weekend, especially if unexpected negative news occurs.

Impact of Daylight Saving Time

During October-November and March-April, when countries like the US, UK, and Australia switch their clocks according to daylight saving time (DST), the operating hours of forex trading sessions also change accordingly. Traders need to update their trading schedules to avoid missing optimal trading times.

Conclusion

To maximize profits from forex trading sessions, Vietnamese traders should prioritize the time when London and New York sessions overlap (19h - 23h), as this is when the market experiences the greatest volatility and the best trading opportunities. Combining this knowledge with choosing the right days of the week (Tuesday to Thursday are usually better) can enhance your ability to profit from the forex market.