Forex Sessions + Best Currencies To Trade
2020-01-19 20:15:06
Tokyo Session
This session opens at 12.00 am and closes at 8:00 am. The main participants in this session are commercial banks and central banks. The currencies that are traded the most are Australian Dollar(AUD), New Zealand Dollar(NZD), and the Japanese Yen(JPY).
London Session
This session opens at 8:00 am and closes at 4:00 pm. This session is the most active in the market due to the huge amount of transactions that take place. It is also the session where most trends commence. The currency pairs traded most during this session are EUR/USD, GBP/USD, USD/JPY, USD/CHF, EUR/JPY, and GBP/JPY.
New York Session
This session opens at 1:00 pm and closes at 9:00 pm. Liquidity is highest in the morning and most economic reports are disclosed at the start of the session. Banks and multinational companies are the major participants in this session. The most active currencies in this session are the British Pound, US Dollar, Australian Dollar, Euro, Japanese Yen, Swiss Franc, Canadian Dollar, and New Zealand Dollar.
Sydney Session
Sydney is where the Asian trading session starts. This session opens at 5 pm and closes at 2 am EST. During this session, the major participants are exporters and central banks.
Liquidity is normally low considering low transactions as compared to other trading sessions. However, there may be some volatility during the Sydney-Tokyo overlap. The major moves can be seen in currency pairs such as AUD, NZD, and JPY pairs.
The Sydney session may give an idea to traders on what actions they should take during the other trading sessions.
Best Time to Trade Forex
The best time to trade Forex is within the first five hours of the trading sessions mentioned above. However, it is recommended that you make trades during the London-New York Session overlap. This is when both the London and New York sessions are open between 1:00 pm and 4:00 pm. At this time there are a lot of transactions taking place thus making it significant to enter a trade. Tuesday, Wednesday, Thursday and early Friday are the most active days in the Forex market.