The Best Times to Trade Forex : Optimizing Your Schedule for Market Volatility

Forex trading is getting a lot of attention in South Africa these days. Many people want to make the most of the fast-moving currency markets. But one thing that can really help improve your trading success is knowing the best times to trade forex. When you choose the right time to trade, you can take advantage of bigger price movements and better market conditions — which means more chances to profit.

Let’s break down the key trading hours, explain how volatility changes during the day, and share tips on how to schedule your trades for the best results.

ALSO READ: How to Use Technical Analysis Tools for Successful Forex Trading in Gauteng

How the Forex Market Works Around the Clock

Unlike the stock market, which opens and closes at set times, the forex market is open 24 hours a day from Monday to Friday. This happens because forex trading happens all over the world — starting in Asia, moving to Europe, and then on to North America.

But not all hours are the same. The best times to trade forex usually depend on the “market sessions”, which are based on major financial centres:

• Sydney session: 10 PM to 7 AM GMT
• Tokyo session: 12 AM to 9 AM GMT
• London session: 8 AM to 5 PM GMT
• New York session: 1 PM to 10 PM GMT

(Source: Investopedia – Forex Market Hours)

Why Timing Is Important: Volatility and Liquidity

Volatility means how much prices move — when volatility is high, prices can swing a lot, giving traders more chances to make profits. But it also means more risk.

Liquidity means how easy it is to buy or sell without the price changing too much. More liquidity usually means smaller “spreads”, which lowers your trading costs.

The best times to trade forex are usually when market sessions overlap — this is when more people are trading, so volatility and liquidity are higher.

Key Overlaps to Watch:

• London-New York overlap (1 PM to 5 PM GMT): This is the busiest time in the forex market. Both London and New York markets are open, creating lots of price movement. Major pairs like EUR/USD, GBP/USD, and USD/ZAR move the most during this time.
• Sydney-Tokyo overlap (12 AM to 7 AM GMT): Less busy than the London-New York overlap but good for trading currencies like AUD/USD, NZD/USD, and USD/JPY.
• London-Tokyo overlap (8 AM to 9 AM GMT): Short but offers moderate trading activity, mostly affecting European and Asian currencies.

(Source: DailyFX – Forex Market Hours)

MORE READS: The Role of the South African Rand (ZAR) in Global Forex Markets: What Gauteng Traders Should Know

What This Means for South African Traders

South Africa uses South African Standard Time (SAST), which is GMT +2 hours. That means the trading sessions look like this locally:

• Sydney session: 12 AM to 9 AM SAST
• Tokyo session: 2 AM to 11 AM SAST
• London session: 10 AM to 7 PM SAST
• New York session: 3 PM to 12 AM SAST

For traders in South Africa, the best times to trade forex are usually during the London and New York sessions, especially when they overlap between 3 PM and 7 PM SAST. This is when the market is most active, and the USD/ZAR pair tends to move the most.

(Source: Trading Economics – USDZAR Historical Data)

When Does USD/ZAR Show the Most Movement?

The USD/ZAR currency pair, which is popular among South African traders, shows the highest volatility during the London-New York overlap — between 3 PM and 7 PM SAST.

• Research from Tickmill shows USD/ZAR can move over 60 pips per hour during this period, while volatility during Asian sessions is much lower, usually under 20 pips per hour.

This means the afternoon to early evening hours offer the best opportunities — but also higher risk — so it’s important to be prepared.

South African Economic Factors That Affect Forex Trading

Here are some important local factors that influence how USD/ZAR behaves:

• South African Reserve Bank (SARB) decisions: When SARB announces interest rates or inflation data (usually during the day), it can cause the rand to strengthen or weaken quickly.
  (Source: SARB)
• Commodity prices: Since South Africa exports a lot of commodities like gold and platinum, changes in these prices can affect the rand’s value.
  (Source: World Bank Commodity Markets)
• US Federal Reserve moves: Fed interest rate decisions and economic data impact the US dollar and influence USD/ZAR, especially during New York trading hours.

Be Ready for Big Moves Around Economic Announcements

Big economic events can cause sudden price swings:

• SARB interest rate announcements and US jobs reports, like the Nonfarm Payrolls released monthly at 7:30 PM SAST, often cause big price jumps in USD/ZAR.
• During these times, price movements can double or more in just a few minutes, so use economic calendars (Forex Factory) to stay prepared.

Tips to Trade at the Best Times

1. Trade during peak hours: Focus on the London-New York overlap when the market is most active.
2. Avoid quiet times: Early morning in South Africa (Sydney session) often has less action and wider spreads.
3. Check economic calendars: Know when major news is coming to avoid surprises.
4. Manage your risk: Use stop-loss orders and trade smaller sizes when markets are volatile.

Useful Tools to Help You Trade

• MetaTrader 4/5 and TradingView: Popular platforms for live charts and news updates.
• Automated trading bots: Can help trade during busy hours even when you’re away.
• Mobile apps: Let you monitor and manage trades anytime.

Making the Most of Your Forex Trading

By trading during the best times to trade forex — especially between 3 PM and 7 PM SAST — and keeping an eye on key economic events, South African traders can make smarter moves in the market.

Combine this with proper risk management, and you’ll be in a stronger position to profit from forex trading.