When Can You Trade Forex?

When Can You Trade Forex?

According to an online encyclopedia, foreign exchange market is defined as a global decentralization market for trading currencies.It is the market wherein people buy and sell money through transfer, credit and hedging. Because of the many trades and transactions happening almost simultaneously inside the forex market at the same time and at different places, it is considered as the largest market in the world. Commercial companies, central banks, retail foreign exchange traders,and money remittance/transfer companies are some of the main participants in this market. The foreign exchange market is the determining factor in providing the corresponding values of currencies around the world.

 

So When Can You Trade Forex?

 

There is really no limit on when to trade your money as forex market usually operates 24 hours a day, although there are times during the day when it is inactive, meaning there is less or no movement in the market. When there is no movement in the market, itis hard to make a profit with your money.That is why it is important to know when the best times of the day are or the best days of the week are to make a trade and get a higher profit.

 

Forex market has four major trading sessions.These are the Sydney session, Tokyo session, London session, and the New York session. Each of these sessions has its actual open and close times, which are based on local business hours.Adjustments are then made on these times during the months of October and April because of the (DST) or Daylight Saving Time in some countries.Take note also that there are differences on what day of the month a country may shift to or from DST. The tables below show the open and close times for each sessions:

 

Summer (approximately from April to October)

Time Zone GMT EST
SydneyOpen

Sydney Close

2200

0700

1800

0300

Tokyo Open

Tokyo Close

2300

0800

1900

0400

London Open

London Close

0700

1600

0300

1200

New York Open

New York Close

1200

2100

0800

1700

 

Winter (approximately from October to April)

Time Zone GMT EST
Sydney Open

Sydney Close

2100

0600

1600

0100

Tokyo Open

Tokyo Close

2300

0800

1800

0300

London Open

London Close

0800

1700

0300

1200

New York Open

New York Close

1300

2200

0800

1700

 

 

 

For those who belong to different time zone, there are several websites that have a time zone converter that lets you compare time from two places or even more at once. You can use this converter to make an accurate and reliable timetable regarding the schedules of these four major sessions to correspond to your area.

 

If you would look closelyat the schedules, there are instances when two sessions overlap or two sessions are open at the same time.According to experienced traders, there is a good chance to earn profit during these times because of the increase in volume of participants who are making deals and the movement of money is faster.

 

Here are some of the things to take note of from each of the major sessions in forex trading:

 

SYDNEY SESSIONS

 

AUD ranks 5th in the most traded currencies.Interest rate outlook should be given special attention in trading AUD, which can be greatly influenced by comments from RBA (Reserve Bank of Australia) officials.

 

TOKYO SESSIONS

JPY ranks 3rd in the most traded currencies.Tokyo session is referred to as the Asian sessionwith Tokyo being the financial capital of Asia. Commercial companies and central banks are its main participants.

LONDON SESSIONS

 

It is considered as the forex capital of the world with about 30% of all forex trades taking place during the London session.GBP ranks 4th in the most traded currencies.

 

NEW YORK SESSIONS

New York is known as the “City That Never Sleeps” and the major financial center in the United States.Morning sessions overlaps with the European session,meaning high liquidity.USD is at the top in the most traded currencies with 87% daily share as of April 2013.

As mentioned earlier, liquidity is high when two sessions overlap each other and is probably the best time to trade Forex but not always. Most traders suggest looking for the overlap between London and New York. This is the busiest time of the day where most of the trading happens and the potential to earn profit is high.

These are just a small portion of information regarding when you can trade Forex. You can always check out other articles in the web for a more in-depth analysis and for additional tips and strategies from experienced and successful traders in the world of foreign exchange market.

Leave a Reply

Your email address will not be published. Required fields are marked *