The forex market is active 24 hours for five days a week. However, certain trading times are more convenient than others. This is due to reasons such as;
- Some trading sessions are more active than others.
- Depending on your time zone, some trading sessions happen overnight.
As a new trader, you might want to choose the most convenient trading time for you. Taking this into account, this article explains the best time to trade forex in Kenya.
The trading sessions include; Sydney session, Tokyo, London, and New York session.
|EST (OPEN)||EST (CLOSE)||EAT (OPEN) NAIROBI||EAT (CLOSE) NAIROBI||GMT (OPEN)||GMT (CLOSE)|
|Sydney||3 p.m.||12 a.m.||11 p.m.||8 a.m.||8 p.m.||5 a.m.|
|Tokyo||7 p.m.||4 a.m.||3 a.m.||12 p.m.||12 a.m.||9 a.m.|
|London||3 a.m.||12 p.m.||11 a.m.||8 p.m.||8 a.m.||5 p.m.|
|New York||8 a.m.||5 p.m.||4 p.m.||1 a.m.||1 p.m.||10 p.m.|
Kenya is under the Eastern Africa Time Zone (EAT). Therefore, the hours indicated below are in the Eastern Africa time zone (EAT).
- Sydney Session
Trading begins in Sydney, Australia. It opens at 11 p.m. and closes at 8 a.m. EAT. The major currencies traded during this session are the Japanese yen (JPY), Australian Dollar (AUD), and New Zealand Dollar (NZD).
- Tokyo Session
Trading begins in Tokyo, Japan. It opens at 3 a.m. and closes at 12 p.m. EAT. The major currencies traded during this session are the Japanese yen (JPY), Australian Dollar (AUD), and New Zealand Dollar (NZD).
- London Session
Trading begins in London, UK. This session is the most active of all the trading sessions. It opens at 11 a.m. and it closes at 8 p.m. EAT. The major currencies traded during this session are EUR/USD, GBP/USD, and USD/CHF.
- New York Session
Trading begins in New York, USA. It begins at 4 p.m. and closes at 1 a.m. This is the second most active session, after the London session. The most commonly traded currencies during this session are the EUR/USD, GBP/USD, USD/JPY, and USD/CHF.
When is the Best Time to Trade?
The best time to trade forex in Kenya is during the overlaps. This is where two trading sessions are open and active, where one trading session begins before the previous trading session ends.
This is beneficial because in an overlap, transactions are high and there is potential for high price movements. This gives traders a profitable opportunity.
- London-New York overlap. This takes place between 4 p.m. to 8 p.m. EAT.
- Tokyo-London overlap. This occurs between 11 a.m. to 12 p.m. EAT.
In conclusion, it is a great advantage for traders in Kenya since the London-New York, and Tokyo-London overlaps takes place during the day.