Forex Trading Sessions in Nigeria Time
Forex Trading Sessions by local Nigerian time:
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Asian session - 01:00 am to 10:00 am
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European session - 09:00 am to 06:00 pm
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North American session - 03:00 pm to 12:00 pm
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Pacific Session - 5:00 am to 02:00 pm
Daily Forex volume in the United States Forex Market climbed to $966.7 billion in the first quarter of 2023. The growth was 27% stronger compared to other previous years. Today, the global forex market is among the most vibrant counter markets for trading currency. The FX market operates 24-hours a day, with billions of dollars worth of forex currency changing hands.
While the market remains open 24 hours daily, it operates at varying times in different parts of the world. In Africa, forex trading continues to gain remarkable traction. Nigeria is among the greatest forex market trading giants on the continent. With an annual GDP of 432,293, 776. 26 Nigeria's economy supports a thriving forex exchange market.
If you are a forex trader with interests in the Nigerian FX market, understanding the forex trading sessions in the country is imperative. This review delves into the Forex Market trading sessions in Nigerian time. This information will help you make better forex trading sessions.
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When is the Forex market most active in Nigerian Time?
The Forex market is most active during the London-New York overlap, from 2:00pm to 6:00pm WAT, when trading volume and volatility tend to peak.
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Is it possible to trade part-time while keeping a regular day job?
Yes, with opening and closing times for sessions around the clock, it’s possible to trade for just 1-2 hours per day with the right strategy.
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What causes spreads to widen at certain times?
Volatility or low liquidity are the main reasons spreads widen, which commonly occurs around news events or between trading sessions.
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Which session is best for swing trading strategies?
The New York session frequently generates the most tradable swing patterns backed by directional commitment from institutional participants.
Forex trading sessions in Nigerian time
When trading Forex in Nigeria, there are some facts to be aware of. Firstly, experts advise traders to consider making trades between 10:15 am and 2:30 pm. This is because the morning volatility often tends to taper off between 10:00 and 10:15 am.
If you are trading Forex in Nigeria, here are the Forex sessions you should know:
Asian session
The primary market for the Asian session is in Tokyo. The trading hours for this session are 12:00 am to 09:00 am (01:00 am to 10:00 am by local Nigerian time) . The best currency trading pairs are USD/JPY, GBP/JPY, and EUR/JPY.
European session
The primary market for the European session is in London. The trading hours for this session are from 08:00 am to 05:00 pm (09:00 am to 06:00 pm by local Nigerian time). The best currency pairs are EUR/USD, GBP/USD, and EUR/GBP. The most popular pairs are EUR/USD, USD/JPY, and GBP/USD.
North American session
The primary market for the North American session is in New York. The trading hours for this session are from 02:00 pm to 11:00 pm (03:00 pm to 12:00 pm by local Nigerian time). The best currency pairs are EUR/USD, USD/JPY, and GBP/USD.
Pacific Session
The primary market for the Australia session is in Sydney. The trading hours for this session are from 04:00 am to 01:00 pm (05:00 am to 02:00 pm by local Nigerian time). The best currency pairs are AUD/USD and NZD/USD.
Time zones in Nigeria
Now that you understand the four major global time zones, the next question would be, which are the best times to trade in Nigeria's forex market. The first thing that you must consider is the kind of trader you are before making any conclusions. Whether you are a day trader or a night trader, your forex trading session in Nigeria could differ.
A day trader refers to a trader who trades forex on an intra-day approach. The idea is to make small profits within a day. The day trader achieves this by switching positions, often targeting short-term variations. Night trading refers to a trader who prefers trading during night hours to capitalize on other forex sessions time gaps.
You can also take advantage of these varying trading sessions to make money in Nigeria. The global forex market falls into three major trading sessions. If you are a trader in Nigeria, you may need to adjust your timings to ensure you take full advantage of these sessions.
Nigeria is a West African country, which means the time zone falls into the West Africa Standard Time. The standard time zone in Nigeria is (GMT+1). Nigeria's time zone is 6 hours ahead of the expected time in New York. On the other hand, Nigeria's time zone is 10 hours behind Sydney's time. If you are a trader in Nigeria, your time difference with the Tokyo (Asian) session is around 8 hours. Finally, traders in Nigeria may also need to consider the 1 hours difference between the West African nation and the time zone in London.
What is the best time to trade Forex in Nigeria?
With insights into the actual time zone in Nigeria and the time difference with the major trading sessions, the next question should be the best trading times for forex traders in Nigeria. The answer to this question depends on other factors such as your trading pairs, time of trading and the kind of time-trader you are.
Best time to trade Forex - TU research
| Session | Time | Lagos Time |
|---|---|---|
New York |
7 am- 16:00 PM |
4:00 – 23 :00 PM |
Tokyo |
01:00 - 10:00 AM |
12:00 – 9:00 PM |
Sydney |
22:00 – 7:00 AM |
22:00- 7:00 AM |
London |
7:00 AM - 16:00 PM |
8:00 am – 5:00 PM |
Every trader hopes to get the best out of their trade ventures, and if you are in Nigeria, these time zones are the best for you to make as much as possible. According to recent research by TU, you may combine both intraday and long-term trading strategies to help you take full advantage of the Nigerian forex market.
The best strategy, according to the research, is the intraday approach. At least 52% of traders believe that this strategy is yielding the best results. On the other hand, at least 48% of the respondents consider long-term plans the best solution. Even then, engaging in a mix of both long-term and intraday trading can yield high returns.
Long-term vs Intraday Trading Strategy
Best time for day trading Forex in Nigeria
For most experts, this is a question asked on multiple trading platforms. For forex traders in Nigeria who utilize intraday trading strategies. It is generally advised that you consider between 10:15 am and 2:30 pm as the best time to trade. The timing is because morning volatility often tends to subside from 10:00 up to 10:15 am. Volatility refers to evaluating the currency value by which the market prices fluctuate given a specific period. For beginners, this may refer to the upswings and downswings in the forex market.
Best Forex pairs to trade in Nigerian trading sessions
If you intend to engage in forex in Nigeria, you probably wonder which forex pairs to consider. For most traders in the country, the favourite pairs are EUR/USD and USD/JPY. At least 80% of the traders in this country prefer these two pairs. You may also consider GBP/USD or AUD/USD if you are looking for less volatile pairs.
Right time to pause Forex trading in Nigeria
When trading in forex in Nigeria, knowing when to pause trading is imperative. When traders place stop-loss orders, they, in essence, limit the extent of losses they can incur during a given trading period. If you opt to trade in EUR/USD pairs at an order ratio of 1.1500, your pause point should be 1.145. You may need to adopt this approach in volatile markets. Sometimes, the forex market can have drastic price changing trends. It's essential to read through such trends.
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Summary
Understanding the various Forex trading sessions and how they relate to your local time zone in Nigeria is an important factor when determining the best times for you to trade. While the global forex market operates 24/7, focusing your trading during the peak volume times of the London and New York sessions can help maximize opportunities. Be sure to backtest various strategies during these periods to see what works best for your schedule and risk tolerance. Don't forget to also consider macro factors like current economic conditions and upcoming news releases that can impact volatility. With some testing and experience trading during the most active forex hours for your location, Nigerian traders can better profit from the price movements occurring around the clock in this large global market.
Expert Opinion
Seeing as the Forex market operates 24 hours a day, traders have an opportunity to choose their preferred trading time. If you have the opportunity to engage in day trading, focus on the European session, the last hours of which overlap with the North American session. This period sees the highest trading volume and the release of a large number of economic news. If trading is not your primary occupation and you cannot dedicate time during the European session, evening trading during the North American session can be equally effective due to significant trading volumes and the timing of news releases from the Federal Reserve.
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.