There are four different trading sessions on the forex market, and you should know which is which so that you can take advantage of the best opportunities to make money in the currency market. The first trading session runs from 8:00 AM to 12:00 PM Eastern Daylight Time (EDT). Then, the second session is the New York session, which runs from 8 AM to 5 PM ET.
The first session is the New York session, and volatility is typically lower during the New York session. This session is often dominated by Asian pacific currencies, which often see more significant moves compared to their non-Asian counterparts. This is due to the release of macroeconomic data and news from countries in the Asia Pacific region. Other important news releases during this session are the release of US industrial production, Nonfarm payrolls, and Retail Sales.
While both New York and London trading sessions are volatile, the New York/London overlap sets the tone for many currency pairs. To ensure you get the best out of both sessions, be sure to research the currencies you wish to trade and learn about the different Forex trading sessions. This knowledge will give you an edge when trading currencies. This can help you avoid common mistakes and make better trades. For example, you may want to trade the GBPJPY during the London/New York session overlap, as this currency pair tends to have high volatility during this time.
If you want to trade more actively, you should know which trading sessions are the most active. The most active trading times are the Asian, European, and North American sessions. Each session has its own unique characteristics. Knowing which time to trade will help you develop a trading strategy that is optimal for your trading style. Traders often focus their efforts during a single trading session, which is why it is important to learn when these sessions occur.
After the Asian session closes, the London session begins. This session has higher volumes and lower costs than the previous two sessions. However, it is more volatile than the European session and overlaps with the Asian session in the early morning hours. So, while one session may be dominated by a currency pair, the other sessions have lower volume and fewer traders.
The London session opens at 0800 hours GMT and closes at 1600 hours GMT. The London session is the most active in the forex market, with over 32% of activity. During this time, other key financial centers are also active, such as Frankfurt, Milan, and Amsterdam. Most of the currencies in the forex market experience high liquidity during the London session.
When to Trade in the Forex Market
