The forex market is open 24 hours a day, five days a week. The way this happens is that different markets across the world open at different times due
The forex market is open 24 hours a day, five days a week. The way this happens is that different markets across the world open at different times due to how time zones work. Traders and investors in Dubai can also take advantage of this by looking for opportunities at optimal times around the clock. The city has emerged as one of the most important financial and trading hubs, which explains why it has become so popular with traders and investors. So, how can you take advantage of forex trading hours in Dubai?
Dubai Trading Hours
The Dubai Financial Market opens every day from Monday to Friday from 10 AM to 2:45 PM. It does not take a lunch break, allowing traders to complete contracts and trades, enter and exit positions, and reassess their investments for 2 hours and 45 minutes for each of the five days.
However, traders can invest outside these hours if they can leverage opportunities that emerge in other financial markets. Many of these arise when different financial markets’ open times overlap, creating periods of high volatility and high trading volumes.
Leveraging the Asian Session
The Asian session, also called the Sydney session, is outside of Dubai’s trading hours, starting at 1 AM and closing at 10 AM local time. While not considered the best trading opening for those in the Gulf time zone, it is still the best for trading within a range.
The reason is that currency pairs often have a very tight range at this time. With little volatility that does not present opportunities for leveraging very high and very low prices, traders must set proper support and resistance levels to know when to enter and exit contracts and trades and the ranges to trade within.
The Asian session is best for trading currencies traded against the Yen, such as EUR/JPY and USD/JPY. It can also be profitable for those following regional news because they can take advantage of the volatility this causes before the rest of the world catches on.
The London/European Session
The London session starts at 11 AM Dubai time and often has a lot of activity as the market learns of what happened overnight, prepares for a new day, and adjusts to breakouts from the Asian trading session.
Volatility increases due to increased activity, leading to high liquidity for major currency pairs, including USD/JPY, GBP/USD, and EUR/USD. Since the London and Dubai trading sessions align almost perfectly, it is a great time for those doing forex trading in Dubai to stay active and find opportunities within the frenzy of activity in the market.
The Overlap Session
The London and New York sessions overlap at 4 PM Dubai time, and the trends that started in Europe earlier can continue during this trading session. Leveraging this overlap is, therefore, perfect for traders using trend-following strategies. Some traders also increase their activity during the overlap to take advantage of volatility and liquidity caused by trading activity in the European and American markets.
Dubai is so well positioned that it allows traders to take advantage of the 24-hour forex market. For example, the overlap between the London and New York sessions presents numerous forex trading opportunities. Traders can also take advantage of the early or late Asian sessions, especially if significant news has caused considerable price movements.