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Forex Sessions – Knowing When To Trade In The FX Market?

Having knowledge about the forex sessions can be a great way to make the most out of your trading. The sessions can range from the Asian session to the European one. The Japanese session can also be another good option to consider.

London Session

Traders looking for a trading session with maximum liquidity and high volume will look towards the London session. The London market accounts for 35% of the average forex turnover. During the London session, major currency pairs like EUR/USD and GBP/USD trade in volume. The Tokyo session is also not to be neglected. The Tokyo forex market opens at 7:00 PM EST and closes at 4:00 AM. Singapore and Hong Kong are also active players.

The Japanese yen is the most traded currency. This is due to inter-bank activities between the two countries. The yen covers 16.5% of all forex transactions. In addition, the spread on the EUR/USD is less volatile than that of other currencies. This makes it easier to manage risk. Typically, the spread ranges from 0.1 to 2 pips.

European Session

Traders need to know when to trade in the FX market in order to take advantage of all the different opportunities. In the world of forex, there are three main trading sessions, each with its own characteristics. These sessions include the Asian, European and North American sessions. The best time to trade in the forex sessions times est depend on several factors, including your location. For example, when in New Zealand, the forex market opens on Monday morning. The London session begins at 8 AM UK time, which is the same as 3 AM Eastern Standard Time.

Among the other important things to watch are economic indicators from the countries of Germany and Italy. You should also pay attention to the release of the Non-Farm Payroll, a crucial piece of information that always comes out during the New York session.

Asian Session

Traditionally, forex trading sessions are grouped into three major periods. These are the Asian session, the London session, and the New York session. Each session has its own unique characteristics. Each session is driven by different factors and is best used for specific types of trading. The market also depends on the location of the trader and his or her time zone. The Asian session is the first forex market to open on a trading week. This is the period where the most trading occurs. This is also the period when important economic news is released. The Japanese yen is one of the most traded currencies in this session. Several other major currency pairs can be traded during this period.

The New York and European sessions overlap each other. The markets overlap from approximately 7:00 PM until 2:00 AM. The New York session is most active during the overlap period.

Japanese Session

Traders who base their strategies on fundamental analysis may choose to trade currencies in the Asia-Pacific region. This is because the Japanese and Australian economies are reliant on Chinese demand. The two markets could see more movement in the AUD and JPY pairs when Chinese data comes in. While the Asian session is the quietest of the three major forex sessions, it still has some advantages. Because of the thin volume, most currency pairs trade with very small spreads. This helps reduce the risk of large moves outside of trading ranges.

It also allows for the management of trades better. Unlike the United States and London sessions, the Asian session adheres to its support and resistance levels more often. This makes it ideal for range trading.

Afterhours Forex Trading

During afterhours forex trading sessions, the total volume of trades may be much lower than during the regular session. This could lead to greater price volatility. The spread between the bid and ask prices is usually wider. However, it is possible to make good profits during this time. There are several things to know about afterhours forex trading sessions. Firstly, it’s important to understand the different order types. Typically, you will be limited to placing limit orders in afterhour’s forex trading sessions.

Another thing to consider is the type of assets that you can trade. Many brokerages have specific hours for afterhours trading. These can range from two to five hours. It’s also important to remember that you’ll be competing with professional traders. You will also have to consider the size of your account. If you have a large account, you might want to limit your afterhours trading to only a few stocks.

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