Forex is the largest financial market globally, trading at a staggering 6.6 trillion US dollars in a single day.
Because of its vast size and liquidity, buyers and sellers are always ready to make the transaction, anytime, anywhere.
Then now it’s about time you learn about the different forex trading sessions.
In forex trading, market paired currencies are traded.
Currencies are being consistently exchanged in pairs, such as the EUR/USD, and traders make placements based on their speculation of price changes.
Currency price changes are estimated in pips, which traders use to establish trading positions.
The forex market is open 24 hours a day, but that doesn’t mean it stays active the entire day.
Forex Trading Sessions is a period that matches the prior daytime trading hours for a given location.
The primary trading hours naturally vary from one country due to opposing time zones.
The forex market has had three peak trading sessions.
Traders often focus on one of the three trading periods rather than trade the markets 24 hours per day.
These sessions consist of the Asian, European, and North American sessions, famously known as Tokyo, London, and New York.
The Tokyo Capital Market represents the Asian market. Japan is the world's third-largest forex trading center, and the Yen takes a 16.8% share of all the transactions.
According to GMT, this market is active from 12 am to 8 am.
The opening and closing times of the Tokyo session: In Local Time 9:00 am to 6:00 pm, In EST 7:00 am to 4:00 pm, and UTC 12:00 am to 9:00 am.
London's strategic location has always been the center of trade. It also gets benefits from its time zone.
Late Aisa trading overlaps with London's morning, and New York's morning coincides with London's afternoon.
The London session is known as The European session. It starts taking over the currency market after closing the Asian trading session.
According to the local time, the London session opens at 8:00 am and Closes at 5:00 pm.
And GMT's official business hours are from 7:30 am to 3:30 pm.
The New York session starts before the Asian Market goes offline, but it's just the middle of the day for European traders.
It's Because the other major financial centers like North America, Toronto, and Chicago open simultaneously.
The primary market for this session is from 12 pm to 8 pm.
According to its local time, New York's session starts at 8:00 am and closes at 5:00 pm EST period is 8:00 am to 5:00 pm and the UTC period is 1:00 pm to 10:00 pm.
The forex market is dominated by the major time zones of Asia, Europe, and the United States. When time zones overlay, it forms one of the best market circumstances for forex traders.
The time zones are:
New York & London sessions GMT (12 pm to 5 pm)
London & Asia sessions GMT (8 am to 9 am )
Trades can also pick up on specific days and drag on others.
Tuesday, Wednesday and Thursday are the most suitable days for Forex trading due to higher volatility.
During the midpoint of the week, the currency market sees the most exchanging action.
As for the rest of the week, Mondays are stable, and Fridays can be unanticipated.
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To conclude, forex trading is all about winning and losing. But if you really stick with your strategy and plan, I guess you are on the winner list. All you have to do is keep your patience alive.
All The Best!