Best Forex Trading Time in India (2024) Forex Session Times
Best Forex Trading Time in India is between 6.00-12.00 GMT and 18.00-0.00 GMT. This is the time when the market has maximum liquidity with no slippage and tight spreads. Days with relative stability - Tuesday-Wednesday, the maximum activity of traders is observed on Thursday-Friday.
The global Forex market operates 24 hours a day, but there are certain times when the market trends are more liquid and hence more profitable.
Most traders agree that the best time to trade is during two overlapping trading sessions due to more participants, higher liquidity, and narrow spreads.
However, experts from the Traders Union researched whether periods with the highest volatility and liquidity have the most successful orders. According to the results, the most profitable trading transactions occur when the market is moderately volatile.
Read on to understand the trading hours and sessions, time zones, which Forex pairs to trade, and some of the best forex brokers in India.
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How many hours a day should I trade?
There is no fixed answer. Successful traders may trade only during high impact news/events. New traders usually start with 2-4 hours daily to gain experience without fatigue impacting decisions.
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Should I trade only during my country's session time?
No, you can trade during any active session. But be aware of inherent risks like gappers if trading non-home market hours. Study multiple sessions to trade diverse global liquidity cycles.
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When is the highest volatility in the Forex market?
Generally, volatility is highest during the overlap of the London and New York trading sessions, from 3am IST to 10am IST. Economic news releases can also cause spikes in volatility.
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Is it better to trade only during session overlaps?
It's not necessary but overlaps see highest volumes. One can trade other sessions too by learning order flow, support/resistance and using tighter stops as liquidity will be lower.
Forex trading sessions in India explained
Indian residents are permitted to trade Forex with authorized professionals and for permitted purposes per the Foreign Exchange Management Act, 1999 (FEMA).
Under those circumstances, the trading session times are as follows:
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India's New York trading session starts at 5:30 PM and closes at 2:30 AM. The best currency pairs are EURUSD, USDGBP, and USDCAD.
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The Tokyo-Asian trading session starts at 5:30 AM and ends at 2:30 PM. The best trading pairs are AUD/NZD, AUD/JPY, NZD/JPY, USDJPY, AUDUSD, and NZDUSD.
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The London-European trading session starts at 12:30 PM and ends at 8:30 PM. The best trading pairs are EUR/USD, GBP/USD, USD/JPY, and USD/CHF.
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The Hong Kong and Singapore/Asian trading session starts at 6:30 AM and ends at 2:30 PM. The best trading pairs are JPY/USD, JPY/ EUR, AUD/JPY, and NZD/JPY.
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The Sydney-Pacific session starts at 5:30 AM and ends at 12:30 PM. The best trading pairs are USD/JPY, AUD/NZD, EUR/USD, USD/CHF, and GBP/USD.
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The Wellington-Pacific session starts at 3:30 AM and ends at 10:15 AM.
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The Frankfurt-European session starts at 11:30 AM and ends at 7:30 PM.
Best Forex Brokers in India
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Time zones in India
In India, the Forex trading hours align with India’s Standard time (IST), which is ahead of the Greenwich Mean Time (GMT) by 5 hours 30 minutes or (GMT+5.5).
This table represents the Forex market opening time in India.
| Trading Session | Opening Time (IST) | Closing time (IST) |
|---|---|---|
New York- North American session |
5:30 PM |
2:30 AM |
Tokyo- the Asian session |
5:30 AM |
2:30 PM |
London- European session |
12:30 PM |
8:30 PM |
Hong-Kong and Singapore- the Asian session |
6:30 AM |
2:30 PM |
Sydney- Pacific session |
5:30 AM |
12:30 PM |
Wellington- Pacific session |
3:30 AM |
10:15 AM |
Frankfurt- European session |
11:30 AM |
7:30 PM |
What is the best time to trade Forex in India?
When trading Forex, it's essential to know when specific currency pairs are most liquid.
Besides liquidity and volatility indicators, you should also consider key market indicators such as significant statistical data releases, discussions between global central banks, or country-specific economic indicators.
Best time to trade Forex
The Forex market is most liquid during overlapping trading sessions when the number of traders is very high, affecting the trading volumes.
The high liquidity minimizes slippage chances, increases order executions, and lowers the spreads available on currency pairs.
Experts were able to specify that the best time of day for Forex trading is between 6.00-12.00 GMT and 18.00-0.00 GMT. This is when the percentage profitability is at its peak.
Best time for day trading Forex in India
Forex Day Trading Guide: How to Trade to Earn Money?Every week, the first trading hour sets the pace, especially when a critical financial announcement or occurrence is over the weekend.
The Sydney session has the lowest volatility compared to other sessions. The Tokyo session is more volatile because it starts at the same time in Singapore, China, and other countries in this time zone.
The volatility increases further and remains high when the London session begins due to European investors, hedge funds, and other central banks.
Trading peaks as the New York session starts, and volatility peaks for about three to four hours. When the London session closes, volatility gradually reduces and remains low as the New York session ends.
In India, the session overlaps include:
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The Sydney and Tokyo sessions overlap between 23.00 GMT and 7.00 GMT
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The Tokyo and London sessions overlap between 8.00 GMT and 9.00 GMT
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The London and New York sessions overlap between 13.00 GMT and 17.00 GMT
Which are the best days to trade in India?
Based on the research by a team of experts from the Traders Union, liquidity and price fluctuations are most active on Thursdays and Fridays, while Tuesdays and Wednesdays are most stable.
Trading activity on Mondays mostly depends on various economic factors and statistics published that day. If there are many actions, Tuesday and Wednesday will likely have an equal activity level.
Thursdays and Fridays are the most volatile and most liquid days. On Saturdays and Sundays, the Forex market is inactive for the better part of the day.
There’s also a difference in hours during summer and winter, as below.
| Region | Summer (opening and closing time GMT) | Winter (opening and closing time GMT) |
|---|---|---|
Sydney |
10 PM - 7 AM |
9 PM - 6 AM |
Tokyo |
11 PM - 8 AM |
11 PM – 8 AM |
London |
7 AM – 4 PM |
8 AM – 5 PM |
New York |
12 PM – 9 PM |
1 PM – 10 PM |
What are the main currency pairs?
There are three major categories of Forex currency pairs:
Majors
The major currencies group trade in the highest volumes against the USD and are the most liquid. They also feature quick order execution, low chances of slippage, minimal swaps, and tight spreads.
Most pairs have moderate volatility, except the USD/CAD and GBP/USD pairs. GBP/USD is the most volatile pair, with a daily indicator of 131 pips, while USD/CHF is the least volatile with a daily indicator is 68 pips.
Minors or crosses
Minor currency pairs or crosses don't have the USD and have lower trading volumes and moderate liquidity. The most volatile pairs have GBP and a volatility indicator above 100 pips.
The GBP/NZD pair has the most volatility, with the indicator surpassing 205 pips and the EUR/CHF is least volatile with an indicator of 53 pips.
Exotic pairs
The exotic currency pairs consist of currencies from developed countries or developing markets with a small share percentage in the global market. They have the most promising profit potential with high swap costs, wider spreads, but the slippage risk is higher.
The leading currency pairs are USD/BRL with a volatility indicator of 1,006 pips and USD/SEK with 1,127 pips, followed by USD/TRY with 968 pips.
Best Forex Pairs to Trade in Indian Trading Sessions
There are different opinions regarding the best currency pair for Forex trading. Although highly volatile currency pairs have the maximum profitability, they also carry very high risks.
Time to Pause Forex Trading in India
Knowing when to pause and cash in your profit is essential when trading in Forex. Since you have no control over the factors that affect volatility, it's easy to incur significant losses.
Besides low volatility, there are other reasons not to trade, such as:
Slippage
Slippage happens when the liquidity is low, or the volatility is high. There are fewer participants, which creates a gap between order placement and execution.
A positive slippage results in a profit, but a negative slippage incurs a loss. To minimize the risk of slippage, consider trading during high market activity and low volatility.
Rollover
The base currency is the first currency in currency pairs, and the counter currency is the second. Rollover is the difference between the interest rate of the two currencies in a pair in an open position overnight or after 5 PM ET.
When the rollover is negative, you incur a loss. It's best to close positions on emerging market currencies or cross pairs before 5 PM ET.
What people should take into account in context of trading time in India
When considering the best time to trade Forex in India, several key factors should be taken into account. Firstly, it's important to understand the trading sessions and their overlaps. These overlaps occur when multiple major financial centers are active at the same time, leading to increased liquidity and potentially higher profitability. In India the peak volatility typically happens during the London and New York session overlap, between 3 am to 10 am IST.
Additionally keeping an eye on the timing of news releases and significant events is vital as these can significantly impact market volatility. For instance heightened volatility, in the Forex market often coincides with the London and New York session overlap, around economic data releases.
Furthermore traders should consider their trading preferences and objectives. Some may prefer trading during sessions based on convenience and risk tolerance while others may opt for trading during high impact news events to take advantage of short term market movements.
Lastly, be mindful of the specific trading sessions in India and the corresponding currency pairs. The best currency pairs for Indian traders include EUR/USD, USD/GBP, USD/CAD, USD/JPY, GBP/USD, and USD/CHF, among others.
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Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
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.