Knowing the right time to trade forex can help you maximize profit opportunities in the market. The global forex market is open for trading for 24 hours a day, with the most active trading sessions happening during the New York and London sessions. You can trade forex from 5:00 AM Monday (AEST) to 5:00 PM Friday (EST) when market activity reaches its peak. Forex trades occur five days a week, usually beginning Sunday evening and continuing until Friday evening. Depending on your timezone, you can participate in Sydney, Tokyo, New York, or London trading sessions. This post will discuss the forex market schedule to help you understand the right time to trade.
Top 3 Forex Market Trading Sessions Investors Should Know
Nonstop activity is one factor that makes foreign exchange a viable financial market recording over $8 trillion changing hands daily. This 24-hour market includes three trading periods in different parts of the world, passing the button from the Asian market to Europe and North America. Foreign exchange investors around the world can trade during regular business hours, after work, or even late at night. It’s worth noting that not all times are equal when it comes to forex trading. There are occasions when price actions become highly volatile, and there also times when actions are muted. Forex exchange centers have distinct personalities that traders regard as essential in optimizing their transactions. The following is an overview of the forex trading market and its top three trading sessions that investors should know.
1. Asian Forex Session (Tokyo)
Tokyo’s forex trading sessions naturally see peak actions when liquidity is restored to the FX market from the beginning of the week. Any foreign exchange transactions from the Japan area are unofficially represented by Tokyo’s capital market, which runs from midnight to 9:00 am GMT. Apart from Japan, other notable countries that participate in the Asian forex session include China, Australia, Russia, and New Zealand. The Asian foreign currency trading hours kicks off before the standard Tokyo hours due the scattered nature of the market. 11 PM and 9 AM GMT are the key hours for Asia’s FX market. You can work with Asia’s leading forex brokerage firm Weltrade to enhance your trading journey at a low budget.
2. European Forex Session (London)
Europe’s foreign exchange trading session becomes most active as soon as the Asian market hours close. This dense region includes several key financial markets, with London standing out as the number one city determining the overall outlook of the European forex trading session. Europe’s FX period kicks off before the UK market opens due to the presence of other capital markets, such as Germany and France.
3. North American Forex Session (New York)
North American forex sessions start when the Asian market is down for several hours. However, the day is only halfway through for traders from Europe. The continent accounts for about one-third of the global forex trading market, and it’s largely dominated by the United States of America. Forex activities in New York represent high volatility, and the North American trading hours unofficially begin before GMT starts. The relative gap between the close of the American market and the opening of the Asian market may result in low liquidity.
Whether you come from Asia, Europe, or North America, it’s essential to understand whether high or low volatility may affect your trading strategies. There are instances where trading sessions can overlap and create profit opportunities as a result of substantial price movements.
