Night Trading on the Forex Market (pros and cons)

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Forex market does not cease to function even at night, although the market situation at that time of day is very different from day trading. There are not many traders who prefer working instead of sleeping. And this, of course, makes an impact on the market activity. Scalpers, who are attracted by short timeframes and flat income, dominate among the night players. At this time the Asian segment of the foreign exchange market is in the main focus, while the European part of the world is drowned in sleep.

Trading Forex at Night

A distinctive feature of the night Forex trading is calmness and dullness, as American and European markets are not open during this period. However, the Asian marketplace is not so predictable and sensations happen here from time to time. The largest currency fluctuations are associated with Yen pairs. In Asia Forex news begin to emerge after 3 o’clock in the morning, Moscow time. Mainly these news releases influence the market volatility. Therefore, the majority of traders prefer to work before the news release. This solution protects them from trading with sharp price swings on the background. Using scalping techniques on short timeframes one can earn dozens of pips.

What you need to know

Before making the final choice in favor of night trading, you should be familiar with all the ins and outs of such a decision. A night trader should demonstrate maximum activity and concentration. If the organism is not ready for such stresses, it’s better to give up, because mental health is much more valuable than illusory earnings. In addition, one should have a solid deposit to trade at night, as a sharp drop in the currency value is rather an exception than a common thing at this period. A relatively low volatility opens doors to big deals. Trading on short timeframes can bring a decent income even with a few points. It is also recommended to use flat trading with stable currency pairs. It should also be noted that the night Forex trading is a great opportunity for beginners willing to improve their skills in the foreign currency trading.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.