Knowing about active trading sessions in the global market

The Forex market is the global market for currency trading, which is open for 24 hours on five days a week. Though it is a 24 hours market, few hours may not be suitable for some trading styles. So, traders should know about the perfect time for trading.

In the Forex market, volatility doesn’t remain the same since the price reacts to different economic news. The volatility in different currency pairs depends on the active trading hours of the different countries. Forex traders need to know about the active hour and liquidity of the market.

This knowledge of active hours is very important especially for the day traders who seek opportunities to earn as much as possible on each trading day. Day traders need to set their trading hours according to the liquidity of the market. If you choose the time of high volatility of the market, you will be able to get more profit from the movement of the market. Select the best time for trading may be hard for new traders.

So, you should take time to observe the market thoroughly and should know the open and closing times of the various regional trading session. Now you have to find out which time will be the best for you to trade.

Major trading sessions

Four major trading sessions can be seen in the Forex market, they are the Tokyo, Sydney, London, and the New York trading session. If the traders understand the starting and ending time of each trading session, it will be easy for them to grasp the best trading hours. These sessions correlate with the general time zones when the trading activity of these regions start and stop.

As we said before that instead of being open 24 hours a day on all weekdays, the trading activity does not remain the same for 24 hours. From 19:00 GMT to 22:00 GMT, there we can see a fall in trading activity. This happens because this is an hour to stop their work for American people where in New Zealand and Australia people just start a new day. We know that the Forex market remains close on weekends. But besides the weekends there are two more days when the market remains close and the days are Christmas Day and New year day. So, you cant buy stocks online on such market holidays.

As the Forex market is the global market, where the traders are from different countries of the world and so, they choose different trading sessions to trade. They choose the session which is matched with their working hours.

Trade in specific session only

From the large three trading sessions, the trader should choose the one. If the trader gives focus to all the sessions and tries to trade them all, then, he would fail in the trading market. If you try to trade every session, then you have to divide your concentration towards all of them. Thus you will be unable to understand the movement of the market. But when you will focus on one specific session, the market will be easy for you to understand and you can also be updated by the trading session news of your time zone.

You should also know about the time when the two trading sessions overlap. This overlap creates liquidity and makes the market active as two regions of the world can trade at the same time. In the Forex market, you should not trade at the worst time. It is the time when the New York session end and the Sydney session has not started yet.

When you will understand the different trading sessions of the Forex market properly you will be more skilled in trading. Most importantly, it will help you routinely trade the market, and thus you will be able to make more profit.