Understanding Currency Pairs

This article is being written solely for the purpose of providing our local South Africans with insight and perspective. When trading in South Africa we need to determine the markets, which will provide the most consistent volatility throughout the hours we are actively monitoring our trades. If you are looking to trade USD pairs, for example, you would look to start your trading day around when the U. S session opens. Trading in the relevant market sessions allows you to decrease your risk through anticipating volatility and holding onto your positions with a trading plan in mind to know when to start closing out.

As a South African trader, the best time to trade is when major market sessions overlap.

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This is generally between and During these hours South Africans can catch the last two trading hours of the Tokyo session, which overlaps with the opening of the London session, and a few hours later this session overlaps with the opening of the U. S markets. The London and the U. S sessions are generally the most active trading hours as all market participants affect the currency market in some way.

These sessions are prone to important economic news and data being released that potentially have a great impact on exchange rates. By understanding market sessions you can identify suitable forex strategies based on market activity in those sessions. Forex market is actually open 24 hours a day and 5.

However, it does not mean that all the regions are open for the whole day. There are several major markets in Forex which operate at different times, according to their time zones. Depending on what you would like to trade, which currency pair, you will have to focus on the time slot that the needed markets operate in. Each market is open between 08 AM to 4 PM in their local times, so you would have to convert the market hours to your local time in order to determine when is the most suitable time for you to trade.

The best time to trade in the Forex market depends on the currency pair that you would like to trade and your country of residence. Mainly, the most appropriate times are determined by the activities on major Forex markets in London, New York, Sydney, and Tokyo. However, it is more advisable to look for the overlapping hours between the major markets, as during that period there will be the highest market volatility, therefore greater opportunities for speculating with the prices and generating profits.

We can notice that these two markets are overlapping for three hours and therefore the perfect time slot for you would be to trade from 3 PM to 6 PM on weekdays. It is not advisable to trade on weekends, especially on Sunday and on holidays, as the market activity is extremely low compared to the working days and you would have little chances of generating a significant amount of profit.

Home - Forex trading guides will help you start trading and succeed - Best time to trade Forex in South Africa to be profitable. Best time to trade Forex in South Africa to be profitable The beauty of the Forex lies in its flexibility, one can trade whenever and wherever he wants. When the Forex market is open As different countries are in different time zones the Forex market opens at different hours.

What are the best hours to trade Forex in South Africa? How markets follow each other Being aware of the importance of time is not solely for the purpose of benefiting from the market liquidity. What are the other best and worst times to trade in SA? Here are the worst times to trade, it does not matter where you live I advise you not to trade at this time: Sundays — I am sorry if you were hoping to work during the week and trade only on the weekend. Final Thoughts South African traders have a very big advantage of being in approximately the same zone as Europe is.

At what time the forex market opens? What is the best time to trade? Comments 0 comment s Comments are closed. Read review Get your bonus. Register Read review. SA Insurance company Liberty sees full-year loss. AngloGold to report full-year earnings, expects spike. Can South Africa really benefit from no-deal Brexit? Top 10 richest countries in Africa The number of lots that you can trade will depend on factors like leverage, margin, your risk threshold etc. Leverage: Leverage, by definition, essentially involves borrowing a certain amount of money to invest in something.

Forex Trading for Beginners #3: When is the Best Time to Trade Forex by Rayner Teo

In Forex, if you are using leverage then it means, you are borrowing some money from your broker to place order for a bigger position than your actual capital. Don't worry, and follow through the following example. But what if you can lend money from your broker, and place the order. But Leverage is kind of a double-edged sword which has the potential to increase your profits, but also increases the risk of a bigger loss to you.

A leverage of allows the trader to take a position that is times the amount of initial margin. If the trader is not careful in setting up the stop-loss, it could quickly deplete your trading account. Margin: Margin is the amount needed in your trading account to place an forex trade. Forex brokers set margin requirements to open a trade, and this is the money set aside with the broker when your position is open.

If margin goes down below a threshold required by the broker, you will receive a notice from the broker to fill it up to the required levels. Stop Loss: Stop loss is the level that you can set, at your desired price where you decide to exit a losing trade. Losses are inevitable, but how you manage that loss is important. So always remember to set a stop loss whenever you are placing a trade.

We will now take example of actual trading positions, and how you can place the trade in Forex market. Loss Case: But if the market goes against you, let's say to 1. Loss Case: In case the market goes up, from 1. Both the above cases highlight how you can lose or gain from a forex trade, depending on your position, position size lots , leverage etc. It is best to fully understand all these dynamics on demo, and then only trade live when you have a proper strategy in place.

And always remember to use a Stop-loss for every trade.

What is Forex Trading?

Successfull forex traders follow a sound trading strategy. With technical trading, you are trading based on the chart patterns like candlestics, moving averages etc. On the other hand, fundamental trading involves trading long term based on macro economic factors of a country like their employment data, Retail Sales, Central bank's interest rates etc.

Fundamental analysis mainly involved trading based on the news releases.

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There are plenty of online Forex news calendars available for free if you want to make it your sole trading strategy. Also, you can get an idea on how a particular information may effect the market movement upward or downward. For example , the release of employment news data of a country is a major news because if the higher population is employed, it is a sign that the economy is improved and hence this would reflect in the overall currency value.

Similarly, a bad news or policy change by the central bank of the country would likely affect the currency' price's exchange rate in the short term as well as long term.

Trading Hours

It is wise to learn about both the strategies on demo, spend hours to analyse the charts, and also analyse how the currencies are affected during news hours, and only then trade based on the strategy that works for you. Most Forex brokers offer multiple trading platforms for online forex trading. In this chapter, first we will list for you all the popular trading platforms offered by different brokers.

And then give you the comparison of all the best forex brokers based on their platforms. Metatrader gives traders the ability to perform advanced trading operations, run Expert Advisors and copy trades of other traders. This platform is owned by MetaQuotes Software Company. The best feature with MT4 also offers the flexibility to write your own code and create your own custom indicators and Expert Advisors.

Most of the brokers offer MT4 or the latest MT5 for free. We advise you to go for a broker that offers Metatrader. For a start, you may want to consider trading off a WebTrader. Even the best of traders have bad days, but with good money management you can minimize your risk.

Quick Answer: What Time Does Forex Market Open In South Africa? - Forex

As for the pros , trading in the forex market offers opportunity to gain income. But there are many risks also. Can the risks associated with forex trading be managed? Yes, it is possible.

What are the Forex Market Hours?

All these are sound money management practices that will ensure that you have a better chance of being a successful forex trader. All brokers have different minimum deposit requirements.

We advise beginner traders to use minimum leverage of not more than for keeping your risk low. South African traders should start with the right balance, so that you won't be overtrading or risking a lot of your capital for each trade with very high leverage. Yes, forex trading is legal for traders in South Africa. Although, it is not mandatory for traders to trade with a locally regulated forex broker but it is advised for South African traders to choose a FSCA regulated broker or a any top tier 1 regulated broker like FCA, ASIC broker for safety of your capital and fair trading conditions.

It is advised to trade with FSCA regulated brokers for traders in South Africa, as this would offer you grievance addressal in case of any dispute with the broker rather than in case of a foreign broker.