Forex Trading Time – Before setting the best time for forex trading, we should look at the 24 hour time in the Forex market.
Know Perfect Time For Forex Trading?
Forex Trading time opens and closes according to the time of their respective local trade.
How much major trading hour in Forex industry?
The Forex market has 4 major trading hours.
This list changes in October and April each year because some countries shift to Daylight savings time (DST).
- The Sydney session,
- The Tokyo session,
- The London session, and
- The New York session.
You will notice that –
Each trading session opens two different trading sessions at a specific time.
- At Summer time 3: 00-4: 00 am EDT, Tokyo session and London session together and Summer and winter from 8:00 am-12: 00 pm ET, London session and the New York session session cross each other.
- This time is the busiest time of the whole trading session because during this time 2 trading sessions are transacted together due to which the movement of market trade is much higher.
Tokyo Forex Market session:
Important features of Tokyo Forex Trading Time:
- In fact, there is no reason to think that this session is only traded in the Japanese market, with over a billion transactions in other markets, such as Hong Kong, Singapore, and Sydney.
- Commercial companies (exporters) and central banks participated in most of the transactions in Tokyo session. One thing to keep in mind is that Japan’s economy is most dependent on export trade. Along with Japan, the Chinese economy is also heavily dependent on exports, which is why transactions are so high this session.
- During this time you will notice that Asia Pacific currency such as AUD / USD and NZD / USD are getting much stronger as opposed to non-Asia Pacific currency.
In this session some important Economic:
News is released due to which Daily Trader can take a good position. Since the day starts in this session due to which the traders can take their respective strategies / positions for the next session based on the market of this session.
After the big market movement in New York session, the market of this session is in a fairly Ranging position. (Market movement changes at any time)
Which pair will you trade Tokyo Forex Market session time?
News from Australia, New Zealand, and Japan are released at the Tokyo session, so the most opportunity in this session is to trade NEWS.
- The China market also has a strong potential due to which more movement can be seen in the market when China News comes out at this time. Australia and Japan are largely dependent on the China market, which has seen good movement in the AUD and JPY pairs during China News.
London Forex Market Session-
Important features of London Forex Trading Time:
- As the London session crosses the other two major trading sessions and London is much stronger in the financial markets due to the large amount of currency traded at this time, the amount of liquidity in the market at this time is much higher.Since this session is the most traded.
- Almost all market trends occur at this time and continue until the start of the New York session.
- Market movement shuts down a lot in the middle of this session, as traders wait for the New York trading period to open.
- During the last session of the London session, the market trend went in the opposite direction because the European traders started to leave their positions.
- The market has the most movement.
Which pair will you trade London Forex Market Session time?
It is best if you trade Major Currency pairs (EUR / USD, GBP / USD, USD / JPY, and USD / CHF). Because their spread is very low and these pairs are directly affected by the news of the European session.
Also, you can trade in cross currency (EUR / JPY and GBP / JPY) pairs because there is a lot of movement in these pairs.
Note: EUR / JPY and GBP / JPY are cross currencies and their spread is much higher.
New York Forex Session-
Important features of New-York Forex Trading Time:
- Most economic events are released just before the start of the New York session.
- Approximately 85% of Traders are directly involved in the Dollar ($), which is why when large U.S. When economic data is released, the market movement is much higher.
- U.S. Market movement is much less in the middle of the session because the European market is closed.
- On Friday, U.S. There is no movement of the market in the middle of the session as Asian traders and European traders stop trading in the market.
- Again on Friday, many times U.S. The reason for the possibility of a reversal market at the end of the session is that the U.S. Traders leave their trade positions before the start of the weekly holiday. This is because of the news on Saturday and Sunday so that there is no problem with their trade position next week.
Which pair will you trade New York Forex Session time?
Remember to trade in this session
The reason the amount is so high is because the U.S. and the European market is open at the same time. At this time it is best to trade in major currencies and not cross currencies. On the other hand, being the largest medium of transaction, all traders are required to enter the U.S. Monitors the release of economic data.