Forex operates around the clock, but market activity at different times of the day varies greatly. Night trading has its own specifics: low liquidity, limited movements, and the influence of certain news. However, even at such times, you can find profitable opportunities if you understand how the market works and what strategies to use.

Features of night trading on Forex

At night, market activity is significantly reduced, as major trading centers such as London and New York are closed. However, this does not mean that the market is completely “asleep”.

During the Asian session, currency pairs with the Japanese yen (JPY), Australian dollar (AUD), and New Zealand dollar (NZD) are active. Volatility is lower at this time, but certain movements still occur. Key features of night trading:

• Low volatility. Market movements are less abrupt, which reduces risks, but also limits profit potential.
• Limited news influence. Unlike daytime sessions, the market reacts to news less strongly at night, so trading becomes more technical.

What strategies work at night?

To trade profitably at night, it is important to select suitable strategies that correspond to low market volatility.

1. Range trading. Often the price moves in a narrow corridor at night. This allows you to work from the range boundaries, buying at support levels and selling at resistance. The main thing is to take into account the widening of spreads, which can affect the entry point.
2. Trading on breakouts. During the day, the price often forms support and resistance levels, which can be broken at night with a small but steady movement. If market activity increases, this can be used for short transactions in the direction of the breakout.

Risk management in night trading

Since the market is less predictable at night, it is important to manage risks correctly to minimize losses.

• Control over the size of positions. Since night trading has limited price movements, opening too large positions can lead to unjustified losses. It is better to use moderate lots and not overestimate the risks.
• Accounting for spreads. At night, spreads can widen, especially on low-active pairs, which affects entry and exit points. It is worth considering this factor before opening positions.

Night trading on Forex requires a special approach and a choice of strategies adapted to low volatility. Range trading and level breakouts can bring profit if you manage risks wisely and take into account the peculiarities of the night market. This trading style is suitable for those who prefer calmer and more predictable price movements.