The forex market is a very dynamic trading market. Millions of people trade in Forex each day. Thousands of those Forex traders are from South Africa.
The most commonly asked question by the new traders is about the best times to trade Forex in South Africa.
Best times to trade Forex in South Africa-trading hours
The Forex market offers 24-hour trading for traders. A lot of factors are playing a role in Forex. Hence, experts and professionals try to understand the market shifts and trade-in favorable hours.
The questions about the best times to trade Forex in South Africa stand.
What is the best time?
To answer the question, the best trading time in South Africa starts at 10 am. This is a good time since most people are awake by then. The best trading window closes at 5 pm.
Why is it the best time?
Now that we know the best trading hours. Let’s see what makes these hours favorable for South African traders.
Interests of South African traders
South African traders are interested in USD/ZAR as their base currency pair. Traders often trade with EU or SA licensed brokers. The majority of traders are average citizens with moderate investment funds. Hence, they want more liquidity and less volatility. The traders benefit from more than average leverage rates. Thus,
- Flexible trading hours
- USD focused trading
- Trend following
- EU based brokerage
- Moderate investments
Best trading hours
Best trading hours satisfy most of the needs of South African traders. Recommended trading hours start from 10 am in the morning and end at around 5 pm in the noon.
An average South African trader is a young adult making less than average salary. Hence, most of the traders have school or work in the morning. Considering this, the 10:00 to 17:00 timings are attractive.
- In winters: 10:00 to 17:00
- In summers: 09:00 to 16:00
Benefits of the recommended hours
The recommended hours are very beneficial since;
Most people wake up by 10 am. Office workers and students wake up early in the morning. Professional traders and brokers open their offices around 9 am to align their schedule with the trading session.
Liquidity rates are very attractive in the middle of the day for South African traders.
USD rates are stable in Forex before the US session opens. The New York market opens around 2 pm. Traders who want to trade based on the changes in USD can do so.
The strongest and most traded currencies in Forex are in EU. The EU session opens at 8 am (GMT), and 10 am (SAST). Since there is not a lot of difference in the timing, the traders can also choose to trade in these currency pairs.
London open is the largest stock market in the EU. Traders interested in stock pairs can see the prices in real-time and make efficient trades.
Most of the Forex trading trends are set in the EU session. The trends then play out in the NA session. For South African traders, these sessions line up perfectly. The EU session is halfway over when the New York session starts around 2 pm.
The best times to trade Forex in South Africa are between 10 am to 5 pm. Thus, most traders can align their schedules with this period and earn better profits.