Trading hours are the most important factor in South Africa. South African Forex trading market is one of the active markets in the world. Especially over the last few years, we have noticed an unreal growth in South Africa’s Forex market.
This article is directed at Forex trading hours in South Africa.
Forex trading hours South Africa-Introduction
Most traders treat the Forex market as a 24-hour market. However, that is not exactly the case. The Forex market is open 24 hours a day through different sessions, but each session operates differently. There are many factors involved that fluctuate through the course of a session.
Let’s jump into our review of Forex trading hours in South Africa, so you can trade in the hours that suit your trading needs.
Overview of Forex trading hours
The trading hours refer to the opening and closing times of four different sessions in the Forex market. Generally, the market closes at 5 pm on Friday for the weekend.
Trading hours depend on the trading session. Each trading session has different trading factors affecting the trading behaviors in it. The most important trading sessions are;
- New York open
- London open
- Tokyo open
The Sydney session is mostly slept on because of unfavorable trade hours and a lack of trading currencies.
The important factors to note during Forex trading are;
- Currency fluctuation rates
DST and trading hours
Daylights saving times impact the trading hours. In our opinion, in the 21st century, DLS is not a very influential or beneficial thing to do. However, it is still a thing that many western countries do, and it affects Forex trading hours directly.
Every day around 5 pm, the Forex market closes for a few minutes. No one can place a trade during this duration. This rollover period affects the spreads of currency pairs.
Best trading hours
Experts say the best trading time is between 10 am and 5 pm (South African standard time).
The reason for choosing these hours is related to the timings of European and North American sessions timings. The London session opens at 10 am in South Africa, and the NY session starts at 3 pm. This time window is optimal for trading because most of the currency value shifts happen during this time.
Brokers offer better trading rates during this time. Additionally, you can expect a more in-depth analysis and trading tips from experts. High volatility rates also increase the odds of making more profits.
As we know, that European session is the most active session with more than 40% of Forex traders. These trading align almost perfectly with South African timings. SA is only 2 hours ahead of GMT. Thus, it is easier for South African traders to follow the EU session closely.
The South African trading market has gotten very competitive over the last few months. A trader needs to consider a lot of things before making a trade. Trading in the right hours can increase your chances of making better profits.
Thus, the best Forex trading hours in South Africa, in our opinion, are 10 am to 5 pm (SAST).