Trading sessions: which one is right?

19 February 2018

Yes, the Forex market is open 24 hours a day, but that doesn’t mean that levels of activity are constant. In fact, it depends a lot on which pair are you trading. Let’s go by parts:

First, it is important you clearly understand there are FOUR different sessions on a typical Forex trading day. These are Sydney, Tokyo, London and New York. And below you can check times:

Sydney - Opens at 21:00 GMT - Closes at 06:00 GMT
Tokyo - Opens at 23:00 GMT - Closes at 08:00 GMT
London - Opens at 08:00 GMT - Closes at 17:00 GMT
New York - Opens at 13:00 GMT - Closes at 22:00 GMT

Why is it important to understand which sessions offers more volatility? Simple. You can open long positions and make money when prices go up. You can open short positions and make some cash when prices move south. But there is no way to profit when things don’t move at all.

Once you selected the pairs you are most interested to trade, you have to understand in which session they move more actively and therefore, offer more trading opportunities for you.

For instance, if you want to trade GBPUSD, the London to New York sessions will be your best choice. On the contrary, if you want to give the AUDUSD a try, New York to Sydney hours could work better for you. Also, keep in mind that eventually you have to rest.

It is important the pairs you choose to trade will somehow be concentrated on a certain session, to avoid working all day long and well, to get some well-deserved rest.

Overlaps work best. If you are trying to get the most out of your positions, trading during overlaps could be amazingly profitable as you mix activity from two different areas. Any data published during overlaps have a more significant impact on quotes.

Share:


Related

What Will Happen to Bitcoin under Trump?

What Will Happen to Bitcoin under Trump?Trump has declared that the United States could become the global capital of the crypto industry. To achieve this, he proposes reducing regulatory pressures.

8 Nov 2024

Is it Easy to Learn Forex? A Comprehensive Guide to Mastering Forex Trading

Is it Easy to Learn Forex? A Comprehensive Guide to Mastering Forex TradingForex trading is a captivating endeavor, promising both active and passive income streams. Yet, mastering forex is a continuous journey that transcends expertise levels, be it a novice or a seasoned trader...

26 Jan 2024

NordFX: Earning the Title of Best News & Analysis Provider for 2023

NordFX: Earning the Title of Best News & Analysis Provider for 2023In a resounding victory, NordFX, a prominent brokerage firm, has been crowned the "Best News & Analysis Provider" of 2023...

22 Jan 2024

Unlock Global Trading Opportunities with Errante

Unlock Global Trading Opportunities with ErranteErrante, the premier online broker, is dedicated to delivering top-tier services and forging long-lasting, trust-based relationships with our clients. Our mission is to enhance your online trading journey...

18 Jan 2024

Three Popular Gold Trading Strategies When Trading Gold CFDs

Three Popular Gold Trading Strategies When Trading Gold CFDsGold, a precious metal revered for its value for centuries, has found its place in the world of trading. Trading gold has become a popular way to invest in the commodity market...

16 Jan 2024

Mega Super Lottery 2023 New Year's Draw: Another $50,000 Drawn

Mega Super Lottery 2023 New Year's Draw: Another $50,000 DrawnSince 2021, NordFX, a renowned broker in the financial markets, has been captivating its clients with the annual Super Lottery, boasting a staggering prize pool of $100,000...

11 Jan 2024

Suggested Forex Nominations

All Nominations 2024