Best Forex Trading Sessions in Nigeria Time

One of the main advantages of trading forex online is the flexibility of forex trading times. The currency market is open and accessible 24 hours 5 days a week.

The market opens on Sunday 11:00 PM Nigeria Local time (GMT+1) and closes on Friday 10 PM Nigeria Local time.

Through days in the week when trading is on, there is always at least one market open to business. Forex trading takes place in various countries around the world and as one market is closing for the day another is opening in another part of the world. For this reason forex trading is referred to as a 24 hours currency market.

A forex trader needs to know the forex trading times applicable to the different forex markets and also the best times to trade during the day. Some hours and days of the week are known to present better trading opportunities and more profit.

What Time Should You Trade Forex in Nigeria?

Although the forex market is open 24 hours per day during the work week, not all trading hours and sessions are equal.

To be profitable trading forex in Nigeria, you need to understand the forex trading sessions in Nigeria time, how each session behaves, and the best currencies to trade at particular sessions.

In this detailed guide, we delve not only on what are the best trading hours in Nigeria, but also at what currencies you can trade during each session.

It is also important that you understand market open time on Sunday (if you’re eagerly waiting to trade), and also the best days of the week to trade forex.

Forex trading times differ from market to market or country to country due to the difference in time zones and because the international forex market is linked up not by one exchange computer but by a network of computers.

So when one particular exchange closes the international forex market does not necessary have to close. For example if the US market closes, dollar can still be traded on other exchanges or markets around the world.

The best forex trading times to enter the market is when a number of exchanges or markets are opened and large volumes of currencies are being traded. This occurs at times during the day when the markets of several countries are open.

For each time zone, forex is traded 8am to 4pm and so to get the best forex trading times you need to know when the markets of different countries overlap.

At these times there is more activity and fluctuations of rates and that increases the chances of making better profits. The middle of the week has also been noticed to experience more activity and trading in the markets than other days of the week, specifically Tuesday and Wednesday.

What’s the Best Time to Trade Forex in Nigeria

The best time to trade forex in Nigeria is between 2:00 PM and 6:00 PM, Nigerian local time. During this period, the London and the New York trading sessions begin to overlap, creating a lot of market activity and opportunities. The overlap lasts for the next 4 hours, and this means that liquidity is at it’s peak since these are the two largest trading sessions in the world.

For scalpers, the 4-hour period presents an opportunity to make quick profits since spreads are at an all time low of the day. Additionally, a lot of tradeable patterns form during this 4-hour window.

Day traders can also enter into trades during this period and wait to close when the New York trading session is closing at around 5:00 and 6:00 AM. Nigerian time. We actually find this strategy very workable for professional forex traders who do not need to keep glancing at the charts. (Just remember to setup your alarm so that you can wake up to close the trades if you don’t want to pay swap.)

During the week, the Forex market is open 24 hours per day, but not all times of the day are equal. Understanding why is an important lesson for any trader so that they can adapt their trading style to suit the market conditions.

The Importance of Time in Forex Trade Analysis

Liquidity, or the ability to fill a trade without significant shifts in price, is a key concern when comparing various times of day.

Highly liquid pairs like EURUSD can soak up very large orders without blinking, but more exotic pairs will likely slip more noticeably when a very large order is placed. This is because there are less counter orders in the market, meaning that the large order consumes all of the nearby counter orders at various prices before eventually being fully filled. This effect is exaggerated during low liquidity times.

In reality, the exceptional size of the FX market will mean that the smooth opening and closing of positions won’t be a concern for any but the largest of traders, but what is worth noting is how the behavior of the market changes during periods of varying liquidity. 

For high liquidity, there needs to be a large number of orders in the market, so it fits that the highest liquidity periods of the day are when the largest number of traders are active in the market.

1. Sydney Trading Session (22:00 – 07:00 GMT)

This is where the trading day and trading week starts, although it is perhaps the quietest of the sessions, apart from an occasional pick up in volatility at the weekly open as traders react to the weekend’s news.

It is also worth remembering that the interbank market can be active several hours before the retail Forex market, so it is possible that there will be large gaps in price when the retail Forex market opens.

Professional traders use NY close charting too, which means that daily candles will begin at the start of this session and close at the end of the NY session.

Depending on the price action, this can also be a source of volatility at the daily open. On the whole, though, liquidity is frequently the lowest until Asia opens. Spreads will be wide and trading is often very slow. The previous day’s moves will typically be consolidating by now, unless there is a major market-moving piece of news. When a big piece of news lands during this session, the thin conditions cause excessive volatility and exaggerate any moves.

2. Asian Trading Session in Nigeria Time (00:00 – 09:00 GMT)

During the Asian Forex session, the financial markets in Japan, China, and Australia are open for trading. This means that there is increased liquidity in the Forex market, as traders in these countries are buying and selling currencies.

The Asian Forex session is known for its relatively low volatility, as there are fewer major economic releases and market-moving events during this time. However, it is still important to keep an eye on the news and economic indicators, as they can still have an impact on currency prices.

Traders in Nigeria who are interested in participating in the Asian Forex session can do so by opening a Forex trading account with a broker that offers 24-hour trading. It is important to choose a reputable and regulated broker to ensure the safety of your funds.

Here is a guide to the Asian Forex session in Nigeria time:

1. Market opening and closing times: The Asian Forex session begins at 12:00 AM Nigerian time and ends at 9:00 AM Nigerian time. During this time, forex traders in Nigeria can participate in the foreign exchange market and trade currencies.
2. Major currencies traded: The most actively traded currencies during the Asian Forex session are the Japanese yen, the Australian dollar, and the Chinese yuan.
3. Key economic indicators: Some key economic indicators that traders should pay attention to during the Asian Forex session include Japan’s GDP, China’s industrial production and retail sales data, and Australia’s employment data.
4. Market activity: The Asian Forex session is typically a quieter time for the Forex market, as it takes place during the overnight hours in the Western Hemisphere. However, there can still be significant price movements and trading opportunities during this time, particularly if there are major economic releases or geopolitical events.
5. Trading strategies: Traders may choose to adopt different strategies during the Asian Forex session depending on their goals and risk tolerance. For example, some traders may choose to use trend-following strategies, while others may opt for range-trading or scalping strategies. It’s important to carefully consider your own trading style and risk management strategies when participating in the Asian Forex session.

The Yen and Australian pairs are often the most active pairs during this session as the Tokyo and Sydney stock exchanges are open. The large moves observed in the London and NY sessions, though, are less common in the Asian session, which makes range-bound and breakout trading more suitable.

3. London Trading Session (09:00 – 18:00 Nigeria Time)

The London session of the Forex market opens at 9:00 AM Nigerian Time and closes at 6:00 PM (noon) Nigerian Time. The London session is one of the busiest and most active trading sessions in the Forex market, as it coincides with the start of the business day in Europe and the overlap with the end of the trading day in the United States.

The London session is typically the most active session and is often considered the “heart” of the Forex market, as it is during this time that the majority of currency trading activity takes place.

During the London session, a large amount of currency trading activity takes place, as traders in Europe and the United States enter and exit trades. This typically leads to higher liquidity and more favorable trading conditions, as there are more buyers and sellers in the market.

During the London session, the currency pairs that are typically most active are those that are directly related to the British pound. This is because the London session is the primary trading session for the British pound, as London is a major financial center and the center of the foreign exchange market for the British pound.

Some examples of currency pairs that tend to be most active during the London session include:

• GBP/USD (British pound/US dollar): This is one of the most widely traded currency pairs in the world, and it tends to be particularly active during the London session. The GBP/USD pair is often influenced by economic and political developments in the UK and the US, as well as by central bank policy and interest rate decisions.
• GBP/EUR (British pound/euro): The GBP/EUR pair is also a major currency pair that is heavily traded during the London session. This pair tends to be influenced by economic and political developments in the UK and the European Union, as well as by central bank policy and interest rate decisions.
• GBP/JPY (British pound/Japanese yen): The GBP/JPY pair is another currency pair that is heavily traded during the London session. This pair tends to be influenced by economic and political developments in the UK and Japan, as well as by changes in global market sentiment.

It is worth noting that while these currency pairs are typically most active during the London session, they can also be traded at other times of the day or night, as the Forex market is open 24 hours a day. However, trading activity and liquidity tend to be higher during the London session, which can make it a good time to trade these currency pairs for many traders.

UK and European data is typically early in the London session, so when Asia closes at 10:00 GMT, there can be a slight lull until NY opens (at 13:00 GMT), unless there is a strong trend to keep things ticking along.

4. New York Trading Session (13:00 – 22:00 GMT) (14:00-21:00 Nigeria Time)

The New York session is one of the busiest and most active sessions in the forex market. It begins at 8:00 AM Eastern Standard Time (EST) and closes at 5:00 PM EST. In Nigeria, this corresponds to 2:00 PM to 9:00 PM Nigerian Standard Time (WAT).

During the New York session, financial markets in the United States, including the NYSE, are open for business. This means that a large amount of forex trading activity takes place during this time, as traders react to economic data releases and other news events that can impact the value of currencies.

The New York session is typically the busiest session for trading the US dollar, as well as the Canadian dollar, which is closely tied to the performance of the US economy. However, all major currencies can be traded during the New York session, as well as a wide range of minor and exotic currencies.

What Influences the Forex Market During the New York Session?

There are several factors that can influence the forex market during the New York session. These include:

• Economic data releases: The US economy is a major driver of global economic activity, so the release of economic data, such as GDP, inflation, and employment figures, can have a significant impact on the value of the US dollar and other currencies.
• Central bank decisions: The Federal Reserve, the central bank of the United States, can influence the direction of the forex market through its monetary policy decisions, such as changes to interest rates.
• Political developments: Political events, such as elections or trade negotiations, can also impact the forex market, particularly if they have the potential to affect the stability or growth of the US economy.

Tips for Trading During the New York Session

If you are planning to trade the forex market during the New York session, here are a few tips to keep in mind:

• Pay attention to economic data releases: As mentioned above, economic data releases can have a big impact on the forex market, so it’s important to stay informed about what data is coming out and when.
• Use risk management techniques: The forex market can be volatile, especially during the New York session, so it’s important to use risk management techniques, such as setting stop-loss orders, to protect your trades.
• Stay up to date on political developments: Political events can also impact the forex market, so it’s a good idea to stay informed about what’s happening on the political front.

New York is where the trading day and therefore trading week ends. US data is typically early in the session too, so the crossover from London to New York is one of the most important times of day for traders. Liquidity is at its highest, spreads typically at their lowest and the risk of an exhausted trend reversing is high.

As London closes, what is referred to as the “NY afternoon” begins. The trading activity dies down, but there are still a lot of traders in America sitting at their desks. As such, if an important piece of news hits during this time, it can display remarkable volatility, which again makes news and breakout trading favorable during this quiet period.

Liquidity and trading activity in the Forex market tend to be higher during the overlapping trading hours of the major financial centers, which are:

• The London session, which runs from 3:00 AM to 12:00 PM (15:00) Nigerian Time
• The New York session, which runs from 8:00 AM to 5:00 PM (17:00) Nigerian Time
• The Sydney session, which runs from 10:00 PM to 7:00 AM (07:00) Nigerian Time

It is during these overlapping trading sessions that the Forex market tends to be most active and liquidity is generally higher. However, it is possible to trade currencies at any time of the day or night, as there is always at least one financial center open and providing liquidity to the market.

Last Updated on December 23, 2022 by Patrick Mahinge