Forex Trading Sessions

Now that you've learned what Forex is, why you should trade it, and who makes up the Forex market, it's time to figure out when a trading session is right for you to trade. It's time to see the differences between Forex trading sessions.

As a matter of a fact, it is true that the Forex market is open 24 hours a day, but that does not mean that it is active all day long

You can make money when the market goes up and you can make money when the market goes down

However, it will be very difficult to trade when the market is not moving in any way due to low liquidity.

Also believe us. There will be times when the market will be as quiet as the victim of Medusa.

This particular lesson will help you decide the best time to trade.

Forex Market Hours

Before choosing the best time to trade, you need to check what 24 hours a day is like in the forex world.

The Forex market can be divided into 4 main trading sessions: the Sydney session, the Tokyo session, the London session and Trump's precious tweeting opportunity (before he was banned), and the New York session.

Typically, there are three peak trading sessions in the Forex market.

Instead of trading 24 hours a day, traders often trade around one of three trading windows.

This is known as the “Three Session Forex System”

These sessions consist of Asian, European and North American sessions, also known as Tokyo, London and New York sessions.

Some traders like to split their sessions into local names, while others like to use city community names.

(We lean toward using city names yet landmasses are cool moreover.)

DID YOU KNOW？ The combined share of the top four trading centers, which includes London, New York, Singapore, and Hong Kong amounts to 75% of global FX turnover.

The International Date Scale is where, as usual, a new day in the calendar begins

As New Zealand is an important center of monetary policy, the foreign exchange market opens on Monday mornings, but it is still Sunday in most regions.

The trade starts in New Zealand, but is actually called the Sydney session. There is no rhyme or reason, but we do not establish principles.

There is no time until Friday of the week when the market is officially closed despite some movement between 7:00 PM and 10:00 PM (GMT). Kiwi. Australian merchants are preparing to leave.

There are only two public events during which the entire Forex market is completely closed except for weekends, Christmas and New Year.

Below are tables of the open and close times for each session:

Actual openings and closures are subject to local business hours and most business hours begin around 7-9 AM PDT.

Daylight Saving Time

As some countries (eg USA, UK and Australia) transition to or transition to daylight saving time (DST), the opening and closing times also change over the longer period of October/November and March/April.

To further confuse us, the dates of the months in which countries switch to and back to daylight saving time have also changed.

Also, Japan doesn't allow daylight saving time, so thank you for making it easy.

Right now, you're probably watching the Sydney Open and asking why it's two hours EST.

You can imagine the Sydney Open shifting 1 hour as the US adjusts to standard time, but remember, if the US retreats 1 hour, Sydney advances 60 minutes (the Australian season is the opposite).

Please keep this in mind if you wish to trade during this period at any time.

DST management is annoying, but that's exactly what happens when markets trade non-stop!

In March, April, October and November, the opening hours of the foreign exchange market change as countries switch to daylight saving time on different days of the week. Overlapping trading sessions

If you're still confused, no worries! We built a Forex Market Hours tool that will automatically convert all four trading sessions in your local time zone. Use it as a reference until you remember the market hours from memory.

Trading Session Overlaps

Also, be aware that in the middle of each Forex trading session there is a time zone where both sessions are open at the same time.

For example, a Tokyo session and a London session overlap at 3:00 AM EST in late spring.

Also, 8:00 a.m. to 12:00 p.m. EST during summer and winter for the intersection of the London session and New York session.

This is usually the most active case during a trading day as both markets open at the same time, increasing volume.

This is confirmed based on the fact that in these cases all market participants are spinning and trading, which means more money is going out of hand.

This time, let's look at the normal movement of pips in major currency pairs during each forex trading session

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From the table you can see that London sessions usually bring the most pips per day. Some currency pairs have significantly more pip movements than others.

You can use the MarketMilk™ tool to continuously see normal pip movements for major currency pairs.

For example, the following shows the hourly volatility of EUR/USD in London and New York sessions.

We need to pay more attention to each session, not just how long the meetings overlap.