As you may have probably known or experienced, although the Forex market is opened 24 hours a day on 4 different continents, it doesn’t stay active the entire time. Whether the market moves up or down traders get the benefit from it but if it doesn’t move at all, traders have things to worry about. In this article, we’ll learn about forex trading sessions.
Forex trading sessions
New York session, London session, Tokyo session, and Sydney session are the four major forex trading sessions in the market. Among them, Sydney is the least traded market while the other three in the list are considered as the most traded market and they are known as the “forex 3-session system”.
The market opens in New Zealand on Monday morning while it is still Sunday in other countries. Although New Zealand is the first country where trading starts, it is also marked under the Sydney session.
|Sydney OpenSydney Close||22:0006:00|
|Tokyo OpenTokyo Close||00:0008:00|
|London OpenLondon Close||08:0016:00|
|New York OpenNew York Close||13:0021:00|
|**GMT (Greenwich Mean Time)|
There is no formal closure of the market until Friday but in the meantime, the weirdest thing also happens there as most Kiwi and Aussie traders prepare for work the Americans have just gone home. However, other than the weekend there are only 2 other days when the market remains closed, Christmas and New Year’s Day.
Forex trading hours
Are you just now thinking why you can just trade only Monday to Friday if the market is open 24 hours? Let’s break your misconception over this. The forex market is genuinely open 24 hours round the clock. The weekends of the forex market are just the inability of retail traders to participate. What is a retail trader?
Well, if you are an individual trader who only buys and sells from your personal account, you’re a retail trader. So, when you might be partying on the weekend, the forex market as a currency exchange is still active and alive. Are you getting the idea now why you see a price difference or gaps on the market from the weekend? We’ll not be elaborating on it now but surely you’ll get a detailed analysis on it.
What Are the Best Forex Trading Hours?
This question is probably the most asked question by forex traders. This actually depends on the individual, like the lifestyle and obviously the lifestyle. Though the overlaps of the sessions are the best time to trade for high liquidity, suppose the timezone you live in is midnight for the London-New York overlap. So certainly it’s not suitable for you to stay late till midnight to trade. Hold on!
Are you just getting demotivated over this? Just to let you know, the best part about the trading price action on larger time frames is that it doesn’t matter what time of day it is or what market session it is in. If you see a bullish pin bar on the daily time frame, place a pending order and wait for the market to decide what to do with it. It makes no difference which session starts the order.
The diversified forex trading sessions are the key to the popularity of Forex Trading. This also creates the opportunity to make a profit out of the market regardless of any currency pair and time limitation.