Month-end flows: do you trade the rebalancing?

At month-end, fund rebalancing and corporate hedging produce predictable currency flows that can dominate the last sessions. The moves are real but hard to trade without knowing the flow direction in advance.

Month-end flows: do you trade the rebalancing? — trading sessions clock diagram
The four forex trading sessions across a 24-hour day

Do you?

  • how you anticipate month-end flows
  • the pairs where they show up most
  • the month-end move that caught you
Month-end flows: do you trade the rebalancing? — risk-reward diagram
A risk-reward ratio of 1 to 2

The sessions guide and calendar help time these windows.

Background: Forex market hours: the Sydney, Tokyo, London and New York sessions

Currencies trade around the clock on weekdays, but not with the same liquidity. Session times in UTC, the overlaps that matter and the daylight-saving trap.

What time does the forex market open on Sunday?

Most brokers open at 5 p.m. New York time on Sunday, which is 21:00 UTC in summer and 22:00 UTC in winter.

What is the best time to trade forex?

Liquidity is usually highest during the London–New York overlap, roughly 12:00 to 16:00 UTC in the northern summer, when spreads on major pairs tend to be tightest. Whether that suits you depends on the pairs you trade and your strategy.

Read the full guide

Comments

Log in to join the discussion. Comments follow the community guidelines.

Log in to comment

Loading comments…