The forex market is 24 hours per day, but no-one can, or should try to trade longer than what works for you. Then it becomes a case of picking the best trading sessions, and finding the best time of day to trade.
For those trading Forex in Malaysia, many would say that the best time to get involved is during the crossover of the European and American trading sessions, when big volumes occur. That means 9 p.m. to 12 a.m Malaysia time which may not be suitable for many. Do not worry, there are plenty of options.
The US stock market opens at 9.30pm Malaysia time when the clocks are running on BST, and there is a period before, and for a few hours afterwards in their morning that coincide with traders becoming more active. This gives greater volumes on many of the currency majors and provides more opportunities for various strategies to be effective.
Remember, Malaysia Time is eight hours advanced from Coordinated Universal Time; thus, eight hours must be added to UTC to determine the local standard time.
Simple Tips
- Look for session overlaps
- Evaluate your personal time availability
- Consider your broker’s conditions and access to information
- Test various time periods on demo, then decide what is best for y
When Does The Forex Market Trade?
Forex trading sessions, representing periods of significant financial market activity across different continents, are fundamental for Malaysian traders looking to pinpoint the most opportune moments to trade. Hence, understanding when the Forex market opens in Malaysia becomes essential.
In Eastern Standard Time, the Malaysian Forex market operates from Sunday through Friday at 5 p.m. Considering Malaysia’s position within the GMT+8 time zone, the hours for Forex market activity shift compared to the central trading sessions. Here we dissect the dynamics of Forex trading in Malaysian timing:
Ability to trade at any hour offers Malaysian traders considerable flexibility, implying that they need not restrict their activities solely to daybreak or late evenings. Although Forex trading is not governed by a specific time zone, savvy traders benefit from leveraging time zone disparities which influence currency trading timings.
Nonetheless, these windows pale in comparison to the surge in trades during sessions with overlaps. For those interested in currencies such as EUR, USD, or GBP, the most advantageous moment for Forex trading in Malaysia occurs between 8 to 11 a.m. EST, coinciding with the European and American session overlap, corresponding to 9 p.m. to 12 a.m, Malaysian time (GMT+8). It is within this timeframe that a predominant portion of the global Forex market’s daily trading volume materializes.
During the intersections of Sydney and Tokyo, Tokyo and London, as well as London and New York trading windows, the Forex market experiences heightened volatility. Such volatility becomes an opportune moment for traders to engage in buying or selling certain currency pairs.
There are other overlapping major currencies during regular business hours, such as the JPY and the AUD, and each of these overlap with the EUR and GBP before the US market get’s going.
Despite the fluctuating nature of Forex market activity throughout the day, it remains accessible around the clock, throughout the workweek. Bear in mind, both weekends and federal holidays preclude trading, compelling traders to modify their strategies accordingly—particularly those employing automated trading systems.
Selecting Pairs, and Understanding the market in Malaysia
Prior to selecting a currency pair for trade, Malaysian traders should consider a few factors. Start by checking on your broker’s trading conditions (spread, commission, slippage, order execution, etc.) – these change based on the currency pair you trade, so it is worth checking this first to make sure that your ideal time lines up with the trading action on the pair you most want to trade, and that the fees are acceptable on said pair.
You also want to consider the availability of news and research sources, particularly if you are considering a minor or exotic pair that gains less global coverage. Access to information is essential, and you will want to make sure when deciding on the best time to trade that the sources you trust for information are also online.
In Malaysia, Forex trading is governed by the Securities Commission Malaysia (which operates under the Capital Markets and Services Act of 2007) whilst taxes are the Inland Revenue Board Malaysia’s jurisdiction. This regulatory framework aspires to safeguard market integrity, protect investors, and maintain financial stability in the Forex market. It is incumbent upon investors to engage with licensed brokers, carry out thorough due diligence, and remain vigilant of their rights and protections to diminish the risks associated with Forex trading.
Despite what some may say, there isn’t a best time to trade forex in Malaysia for all traders, there is only a best time to trade for you. Your own personal circumstances, working schedule, family life, and various other factors will all play a role in what time suits you to be trading forex.
There are periods of heightened volume and volatility that can improve trading conditions and improve the effectiveness of certain trading strategies, but that in and of itself is not the complete picture. Get to know the various trading sessions and overlaps on demo accounts first, then try to carve out a dedicated period of your day that you can afford to allocate to trading.
