When it comes to Forex trading, timing is everything. You want to make sure that you are trading during the times when the markets are most active. This will help you to maximize your profits and minimize your losses. In this lesson, we will discuss the different Forex trading sessions and when you should trade during each one!
Major Forex Trading Sessions
The Forex market is open 24 hours a day, but that doesn't mean that trading activity is constant throughout the day. There are four main Forex trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each of these sessions has different characteristics and you will want to trade during the times when the market conditions are most favorable for your trading strategy.
There are four major Forex trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each of these sessions has its own unique characteristics, which traders should be aware of when planning their trading strategies. In this lesson, we will discuss what times each of these sessions starts and ends, as well as some of the key things that happen during each one.
The Sydney Session
The Sydney session is the first major Forex trading session of the day. It begins at 04:00 PM EST and ends at 01:00 AM EST. The Sydney session is known for its high volume of activity, as it is the first chance for traders to react to any news or events that have happened overnight.
The Tokyo Session
The Tokyo session is the next major Forex trading session. It begins at 07:00 PM EST and ends at 04:00 AM EST. The Tokyo session is known for its high volume of activity, as it is the first chance for traders to react to any news or events that have happened overnight.
The London Session
The London session is the third major Forex trading session of the day. It begins at 02:00 AM EST and ends at 11:00 AM EST. The London session is known for its high volume of activity, as it is the first chance for traders to react to any news or events that have happened overnight.
The New York Session
The New York session is the fourth and final major Forex trading session of the day. It begins at 08:00 AM EST and ends at 05:00 PM EST. The New York session is known for its high volume of activity, as it is the first chance for traders to react to any news or events that have happened overnight.
Daylight Savings Time
Opening and closing time of the forex market will also vary during the months of October/November and March/April as some countries (like the United States, United Kingdom, and Australia) shift to/from daylight savings time (DST).
And all countries do not shift to from DST at this time of the year. This makes us more confused.
And among the four seasons, only Japan (Tokyo session) doesn’t observe daylight savings, so we can definitely thank Japan for keeping it simple.
Best session to trade Forex
So, when should you trade during each of these sessions? If you are a day trader, the Sydney and Tokyo sessions might be the best times for you to trade. The London session is usually the most active and volatile session, so it might be a good time to trade if you are looking for more action. The New York session is typically a little bit quieter than the London session, but there is still plenty of trading activity going on.
If you are just starting out in Forex trading, it might be a good idea to practice during the less active times first. That way, you can get a feel for how the market moves and how to execute your trades. Once you have more experience, you can start trading during the more active times.
The risk involved with forex trading online shouldn’t be overlooked. There is a chance of losing a significant amount of money if you don’t know what you’re doing. It is crucial to gain a knowledge of the market prior to you even begin investing with money. Keep reading our lessons.