Web1/4/ · The forex market is divided into four forex trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. However, some WebTo establish the best times to trade and find out which forex assets are most profitable to trade, you have to understand the various trading sessions in Forex. Let’s take a closer WebThe global forex market can be divided into four major trading sessions. Each trading session is centered at different locations with different time zones. The four major ... read more
Japan is one of the world's largest exporters. So, along with Central banks, there are exporters who also participate and drive the market.
During the Asian trading session, market liquidity is sometimes low. In addition, most pairs start moving in a narrow range. For this reason, some traders prefer not to trade during this session. However, some traders are preparing to take action in anticipation of a breakout before the session closes. Moreover, there are a number of traders who do not trade in this session, but they analyze what happened in the Tokyo session so that they can take action in the next sessions when liquidity increases.
During the Tokyo trading session, news traders can focus on trading currencies such as AUD, NZD and JPY, because it is during the Asian trading session that news about these currencies is received. Stronger movements can be expected in Asia-Pacific currency pairs such as AUDUSD and NZDUSD, compared to non-Asia-Pacific pairs such as GBPUSD and EURUSD. Since Japanese companies are actively working with the yen, naturally, we can expect more movement of currencies in a pair with the yen.
China, like Japan, is a major trading player. Thus, whenever news comes from China, it tends to increase market volatility. Moreover, since Australia and Japan rely on Chinese demand, we can expect a significant movement in pairs with AUD and JPY. At a time when Asian markets are preparing to close their market, European markets are preparing totsya open their trading platforms.
The European trading session opens at 3: 00 AM EST 7: 00 AM GMT and closes after eight hours of intense trading. There are several financial centers in Europe, but the main trading is concentrated in London. Consequently, this session is often referred to as the London trading session. London is considered the capital of the Forex market. And it's no wonder that business people make thousands of transactions every minute in this session. The volatility of most currency pairs during this session is usually very high.
The table below shows the approximate number of points in different pairs during the European trading session. The London trading session intersects with two other major trading sessions — the Tokyo session at its close and the new York session at its opening. In this regard, during this time, the market receives a huge amount of money. Consequently, this creates high liquidity and possibly lower spreads. During the Asian session, the market usually consolidates and moves in a range.
But when the European trading session opens, the market traditionally goes out of range and a trend begins. And this trend usually continues until the new York session opens. Please note that in the middle of the European trading session, market volatility tends to decrease. The reason for this may be that at this time, traders take a break for lunch. Traders can also wait for the start of the new York session to revive trading.
If the market was trending at the beginning of the London session, this does not mean that it is will continue in the future. The reason for the trend reversal may be that traders fix their profits at the end of the session.
During the London trading session, you can choose any currency pairs to trade on Forex, because during this session there is a huge volume of trading. However, it is recommended to trade only major pairs such as EURUSD, GBPUSD, USDCAD, USDCHF and USDJPY, as these pairs have very narrow spreads. Another reason to stick with these pairs is that news reports about these currency pairs usually come during a given session, increasing their volatility even more.
See also what brokers exist for trading expert advisors. After five hours of trading during the London session, the Us trading session opens in new York at 8: 00 am EST, when Europeans return from their lunch break.
As we remember, the Tokyo session is known as the Asian session, the London session is known as the European session, and the new York session is also called the American trading session. As for volatility, the new York trading session is after the London one. In other words, the movement of points on major currency pairs is less in the Us session compared to the European session, but more than in the Asian session.
The table below shows the movement of points in various major currency pairs during the Us trading session. Based on the table above, we can see that the average movement of points during this session is 62 pips. In addition, the most volatile currency pairs are those with USD and some pairs with JPY. As mentioned, when the new York session opens, it coincides with the London session.
Therefore, you can expect high volatility during this time period. Economic news usually appears at the beginning of the new York session. Thus, if there is strong news related to the US economy, it also leads to high volatility in currency pairs with the us dollar. When European markets begin to close their trades, volatility gradually decreases.
This usually happens during the lunch break during the Us trading session. In the second half of the day on Friday, the trading volume becomes very weak because the start of the weekend for Asians and Europeans. In addition, on Fridays, there is a high probability that the markets will reverse their direction, as us traders close their positions to stay away from news events over the weekend. Market volatility during the overlap of the European and American trading sessions is very high.
Thus, you can trade literally any pair of your choice. However, it is recommended to stick to the main currency pairs and avoid trading exotic pairs. News related to those of the United States, can dramatically change the course of the dollar.
Hence, news traders should keep a close eye on the US dollar to catch these sharp movements. If you are just starting to trade on the Forex market, then the American trading session will be more preferable, since its volatility is not as high as during the European session, and not as low as in the Asian session.
However, you should refrain from trading during the release of important news, as due to a sharp increase in volatility, your Cdeals can be knocked out by stop loss. There are a total of 3-time slots when more than 1 global forex trading hubs are active. Tokyo and Sydney active trading sessions remain open for nearly 8 hours.
Although, there are fewer trading volumes for currencies actively traded during this time slot. This makes the intersection of London and New York trading sessions the busiest. Both these trading sessions remain active simultaneously for 4 hours every day throughout the year. The slow and high-volume trading hours are separated depending on the availability and activity of traders in time zones. This makes it feasible for traders residing in different time zones to make their trading schedules.
In general, the market is volatile during active trading hours and stable with a high spread during slow trading hours. However, some events can trigger price movements at any time during the day. The impact of news can trigger price movements at any time of the day regardless of liquidity in the market. The impact of national, international, or geopolitical news is much severe if the news is not expected or against the anticipation.
This can show dramatic price movement at any time of the day during weekdays. The impact of news released during the weekend is visible on Monday when the forex market gets active. Major events affecting the forex market also include trade deals, unemployment rates, GDP data release, accidents, attacks, etc. Any event that enhances or deteriorates the relation between two nations with different can also affect the prices of concerned currency pairs.
The global forex market is divided into trading hubs that have different trading sessions. The American, European, as well as African markets, are active during this time.
The spreads are lowest and technical analysis can work best during this period. This however may not be the best time to trade currency pairs not involving American, European, or African currencies.
The best time to trade forex pairs depends on the currency pair and the location of the trader. With slight experience in forex trading, traders can themselves understand the best time to trade. New traders are always advised to gain some experience using virtual currency with a demo account. This will not only enlighten them with the best time to trade forex but will also provide the experience of price movement in the market.
Forex Trading Sessions in Nigeria Time The forex market is active 24 hours a day for 5 days a week. Forex Trading Session in Nigerian Time The global forex market can be divided into four major trading sessions. The activity and volatility of the forex market are different for each trading session. Tokyo Session — 12 PM to 9 AM Sydney Session — 11 PM to 8 AM Winters , 10 PM to 7 AM Summers London Session — 8 AM to 5 PM Summers , 9 AM to 6 PM Winters New York Session — 1 PM to 10 PM Summers , 2 PM to 11 PM Winters The currency pairs involving local currencies in trading hubs are most liquid during active hours.
Can You Trade Forex Anytime You Want? What is the Best Time to Trade Forex in Nigeria The best time to trade forex depends on the location where you are trading from and the currency pair you are dealing with. Impact of News on Trading Activity The slow and high-volume trading hours are separated depending on the availability and activity of traders in time zones. Bottom Line The global forex market is divided into trading hubs that have different trading sessions.
Education What is Forex Trading? How to Trade Forex?
Integrating this information in your trading strategy has the potential to improve your probability of success. It can also prevent you from taking trades and getting trapped when the price is unlikely to go anywhere soon. I say practically because there are some minutes at the end and the beginning of each day when trading is temporarily suspended.
This pause in trading is known as the market roll over. The Forex market opens on Monday at in Wellington, New Zealand time. It closes for the day at in New York, US time. The Forex market also closes for the week at the same time on Friday. The Forex market is closed on Saturdays and Sundays and opens again when New Zealand resumes business on the following Monday.
As countries open and close for business, the major financial centers hand over the facilitation of trade to each other like a relay. This means that currencies can be traded around the clock. Forex trading times are usually marked by the opening and closing times of the major financial exchanges around the world. The most relevant countries where Forex trading times are recorded from are Australia, Japan, Germany, UK and the US.
When you can actually trade though depends on the Forex broker you are trading with. For the MT4 or MT5 platforms, the contract specification can be viewed within the trading platform. To see it, right click the relevant symbol in the market watch window.
Then select specification from the pop up menu that appears. Trading is also enabled from to every trading day except on Fridays when the market closes at These two minute pauses in trading between week days is when the market rolls over. Any deals held will also get carried over to the next trading day.
When this happens, you will also incur debits or receive credits for these deals from financing charges or the swap. A debit or a credit will depend on the currency pair and whether you are long or short.
I will talk about this more in a later tutorial but the swap is another way you can potentially make money from trading Forex. This breaks the trading day up and helps to make it more manageable. Their terms of reference also make it obvious as to which time we are referring to. Since Forex trading is a global business that covers every time zone. Each of these three Forex trading sessions overlaps with another session for some time before the daily close. Then the market rolls over from the US session, back to the Asian session and the cycle repeats.
I will use the time in the market watch window on the MT4 and MT5 trading platform for the start and end times for each trading session. This time is the trading server time and is the standard time for the New York close price charts. You can find this time in the top left hand side of the trading platform.
What is important when trading Forex is that you are aware of when these times are, wherever you are in the world. The Asian Forex trading session categorically begins at the start of the business day in Wellington, New Zealand. This coincides with the pre-open trading time of the Australian Stock Exchange ASX in Sydney.
It ends at the close of the business day in Tokyo, Japan time. This is when the Tokyo Stock Exchange TSE closes. The European Forex trading session begins at the start of the business day in Frankfurt, German time. This coincides with the opening time of the Deutsche Börse, which is the German Stock Exchange. It ends at the close of the business day in London, UK time. This is when the London Stock Exchange LSE closes.
The US Forex trading session begins at the start of the business day in New York, US time. This coincides with the opening time of the New York Stock Exchange NYSE. It also ends at the end of the business day when the NYSE closes. If you have an Android smart phone, you can download this FX hours app.
It shows you when each Forex trading session opens and closes in terms of your local time. See the screen shot below. Here is something similar for iPhone users.
It is because more participants are coming online and the number of transactions tends to increase. This creates more supply and demand and pushes the price up or down. When trading sessions overlap, the market is more active, liquidity increases and the price becomes more volatile. You want to be capturing significant price trends to maximize your potential to profit. When the price trends and closes higher or lower for the day or week, it usually starts earlier in the trading session.
You also want to be able to get in and out of the market easily. So the best times of day to trade Forex is when it is highly liquid. Having said that, the Forex market is the most liquid market in the world. You can buy or sell at any time. Spreads are usually tighter at these times too, which reduces your trading costs. This is another reason why these times are the best times of day to trade Forex. Since there are three main trading sessions, there are three times each day that are the best times to trade Forex.
Each trading session is not necessarily and equally the best time to trade though. Also, this does not mean you should trade every day or at each of these times. However, you will observe that these times often do provide the best times to trade. When you optimize your market timing and the entry and exit price, you can limit risk and maximize your potential to profit. The image below shows the best times of day to trade Forex during daylight saving time. You can convert these times to your local time or follow the time in the market watch window.
Which means volatility will likely be higher or lower at certain times of the day and during each trading session. Volumes, liquidity and volatility are also different between currency pairs. Some currency pairs are naturally more volatile than others. The most liquid and most volatile times to trade under normal market conditions is when the EU and US sessions overlap.
Spreads are tighter during these times and the price tends to trend better too. In my opinion, the best opportunities can be found at the beginning of the US session. The second best times of day to trade are at the beginning of the EU session and the London open. The least liquid time is during the Asian session. The Asian session is also categorized by lower volatility and wider spreads. This is particularly the case shortly after the market rolls over.
If you open a trade around this time, your transaction cost will likely be higher. In my opinion, the Asian session is the third best time of day to trade Forex. The market tends to consolidate and become range bound during this time. Of course, this all depends on your trading style and strategy….. Now that you know when to look for the best trading opportunities, also consider what currencies to trade.
Ideally, you would want to be following currencies that are active for the session. For example, during the Asian session, consider looking for trading opportunities in the AUD, NZD and JPY. These are the most active trading sessions so it will be. You just might be able to get an optimal trade entry for this currency pair during the Asian session.
Generally speaking, it will be to your advantage to trade currency pairs for those countries that are online at the time. I would suggest observing what the price does and has done during these times on your chart. You can decide what currency pairs to trade depending on your findings and what suits you. Trading is not an exact science, there are no certainties and markets do change over time.
It is about determining patterns and trends, assessing probabilities and balancing risk vs potential reward. Timing is just one variable in Forex trading that could help stack the probabilities in your favor.
I appreciate that you probably have a job and this might make it difficult to trade during the day. If you are in an Asian time zone, you are somewhat in luck.
This is because you could catch most of the European session and the open of the US session at night. Any currency that is paired with the USD or CAD would probably be the best currency pairs to trade at night. For traders in a European time zone, night time trading would allow you to catch the second part of the US session and the Asian session open.
The AUDUSD and the USDJPY could be good currency pairs to trade. Any currency paired with the USD, CAD, NZD, JPY and AUD might provide some trading opportunity. Night time trading in a US time zone would involve trading during the Asian session. If you are inclined to trade in the early hours of the morning, you could also catch the European and London open. The Best currencies to trade at this time would be those that are paired with the AUD, NZD and the JPY.
WebTo establish the best times to trade and find out which forex assets are most profitable to trade, you have to understand the various trading sessions in Forex. Let’s take a closer WebThe global forex market can be divided into four major trading sessions. Each trading session is centered at different locations with different time zones. The four major Web1/4/ · The forex market is divided into four forex trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. However, some ... read more
Schedule of Forex trading sessions The trading session schedule depends on daylight saving time in the United States. I specialize in intraday trading of G20 currencies and to anticipate potential market moves I utilize a fusion of both fundamental and technical analysis. S dollar occur during the U. Most African nations including Nigeria have active working hours in this period. The impact of news released during the weekend is visible on Monday when the forex market gets active. Forex trading times and sessions can be used as entry and exit signals. Forex trading sessions There are four main trading sessions in Forex trading: The Sydney trading session; Tokyo Asian trading session; London European trading session; New York us trading session.See the screen shot below. On Friday evening, the market observes very little movement. It closes for the day at in New York, US time. Due to high volatility, you need to be careful with your risk management strategies while executing trades as sudden market moves can disturb your best forex trading sesions. During the inactive hours, the concerned currency pairs have lower liquidity as the number of participants is low. The best time for trading in Kenya according to 4 Major Sessions:.