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When assessing the best and the worst time to trade, there are two factors to
consider: volatility and liquidity. We want to trade when the market is making
good movements and it is creating opportunities to make money, so we want
to trade when there is high volatility. But we also want to trade when there
are many transactions, so we have a lower spread, which translates to lower
commissions. So we also want to trade when there is large liquidity.
London Session
Due to the large amount of transactions that take place, it is normally the most
volatile one, which means that prices are likely to fluctuate the most during
this session.
Liquidity is very high, which means that, generally, you have lower
commissions to pay because the spread is narrower.
Most news regarding the GBP and the EUR is released during this session,
which can increase volatility and liquidity.
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So the best time to trade is:
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