The best time to trade forex futures

W

WmWaster

I'm a daytrader & trend follower!
I wonder when it is the best time to trade forex futures on one day.

Is there a particular time on one day where the trend, once formed, is large and obvious; volume is very high?

Also do you know which currency provide is most volatile and provide the best % returns?

PS: Since I'm full-time trader, I can trade at any time as I wish.
 
First of all, since you are a full time trader, you should know this already. Simply bring up 24 hr charts of each currency pair.

The US open is USUALLY the most volitile, with volume because that's when the big reports come out. Overall forex volume is actually larger in London, and Euro hours also have good moves. I, however, prefer the first 2 or three hours US trading, say 8 to 11 EST (most of the biggy reports are at 8:30).

Trending, however, can happen at any time. If you are patient enough, trade whenever you feel like it.

Forex futures should give you a good example of volume (no vol stats for forex in general). Its a little misleading for overall fx though, as the US fx futures mkt has always been heaviest during US hours, regardless of what's happening overseas.

Pairs, in order of liquidity, EUR/USD, USD/JPY, GBP/USD. They are all plenty volitile enough, and the first two have very narrow spreads (about a pip depending on who you use).

To summarize, if you are in the States, go with the US open for sure. If you don't need sleep, the UK open would be a good choice as well.
 
Quote from Jayford:

First of all, since you are a full time trader, you should know this already. Simply bring up 24 hr charts of each currency pair.

The US open is USUALLY the most volitile, with volume because that's when the big reports come out. Overall forex volume is actually larger in London, and Euro hours also have good moves. I, however, prefer the first 2 or three hours US trading, say 8 to 11 EST (most of the biggy reports are at 8:30).

Trending, however, can happen at any time. If you are patient enough, trade whenever you feel like it.

Forex futures should give you a good example of volume (no vol stats for forex in general). Its a little misleading for overall fx though, as the US fx futures mkt has always been heaviest during US hours, regardless of what's happening overseas.

Pairs, in order of liquidity, EUR/USD, USD/JPY, GBP/USD. They are all plenty volitile enough, and the first two have very narrow spreads (about a pip depending on who you use).

To summarize, if you are in the States, go with the US open for sure. If you don't need sleep, the UK open would be a good choice as well.
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Very in-depth responses!
thank you so much! :)

Currently I just trade index futures. That's why I know little about forex futres.

Narrow spreads & high volume are my favourities. This can ensure I can open as many contracts as possible, and exit my positions at the right prices. :D
 
These markets are so huge, you will never have problems getting fills. They can absolutely EXPLODE at any time though when news hits the wires. At such times, the spread means nothing as slippage can be massive. Try to be flat before, and usually immediately after the reports. Its nutty at times. Even a spoo trader such as yourself would be impressed by the volitility.

Jay
 
Quote from Jayford:

These markets are so huge, you will never have problems getting fills. They can absolutely EXPLODE at any time though when news hits the wires. At such times, the spread means nothing as slippage can be massive. Try to be flat before, and usually immediately after the reports. Its nutty at times. Even a spoo trader such as yourself would be impressed by the volitility.

Jay
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When it gets nutty :), will it rise/drop suddenly violently in very short time (eg 100 pips in less than 1 minute)?
 
Quote from WmWaster:

When it gets nutty :), will it rise/drop suddenly violently in very short time (eg 100 pips in less than 1 minute)?
More...

During NFP that is very possible.
 
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