To increase your trading success, you should consider the rhythm of the currency market: when one country wakes up and when another one goes to sleep. The activity of a currency at any given time depends on time zones.
A trading session is a business day on the stock exchange. The quotes that you see on your trading platform appear at this time. The currency pairs that include the national currency of a country that is awake are the most active (have high volatility), since the country is active: news and economic data are released and VIPs are making speeches.
There are three main trading sessions (UTC).
Trading period: 00:00 am — 09:00 pm UTC
Countries: Australia (Sydney), New Zealand (Wellington), Japan (Tokyo), China (Hong Kong), Singapore
High volatility: USDJPY, EURJPY (
Moderate volatility: AUDJPY, GBPUSD, USDCHF (the trades from 15 to 60 minutes allow to make money for cautious traders).
Trading period: 06:00 am — 03:00 pm UTC
Countries: Germany (Frankfurt), Switzerland (Zurich), France (Paris), the UK (London) and the whole
High volatility: EURUSD, USDCAD, GBPUSD, USDCHF, EURRUB, USDRUB (suitable for news trading).
Moderate volatility: AUDUSD, EURCHF (suitable for trend trading).
Trading starts: 01:00 pm — 10:00 pm UTC
Countries: United States (New York, Chicago).
High volatility: EURUSD, USDCAD, GBPUSD, USDCHF (suitable for trading on news and
Moderate volatility: AUDUSD, EURCHF, USDJPY, Gold, Silver, Brent (suitable for trading on trends and trades from 15 to 180 minutes).
The European and the American sessions are the most active as they directly affect the major currency pairs. One is also needs to know that there are certain trading days during the week when all the currencies tend to be highly active.
The table below shows the average range in pips for the main instruments for each day of the week.
According to the table, the best trading time is probably the middle of the week, because the most powerful movements take place at that time. On Friday active fluctuations usually last until 0:00 pm UTC and then gradually slow down. Afterwards, stock exchange trading stops and the market is closed for the weekend.
Now you know the best time to trade on any asset and have the best chances to open a series of successful options trades.