How to find the best moment for trading within a day? Trade according to sessions. It's not a secret that trading results depend on the session when the trade is executed, as well as the strategy choice derives from the characteristics of particular Forex market hours.
Do you know how many trading sessions are there in the world and which are the best for your trading? Let's find it out all you need to know about popular Forex trading hours.
Main article sections:
- Major trading sessions
- What's the Asian (Tokyo) trading session and why trading it
- The key characteristics of the Asian session
- A two-step strategy for the Asian session
What hours does Forex work? The greatest thing about Forex is that the market is open 24-hours a day, 5 days a week, that gives traders plenty of opportunities to make a profit all week long (between 22:00 GMT Sunday – 22:00 GMT Friday) from anywhere in the world.
What are the major trading sessions?
- the Sydney session (around 9:00 PM - 5:00 AM GMT)
- the Tokyo session (around 11:00 PM - 7:00 AM GMT)
- the London session (around 7:00 AM - 3:00 PM GMT)
- the New York session (around 12:00 PM - 8:00 PM GMT)
*Please notice that official session starting time is quite subjective and time frames can vary insignificantly.
Every session has it's open and close time when it begins or ends. Usually, the open and close time for each session varies according to location and the time zones. Sometimes, it also varies according to seasons, because of seasonal daylight saving time (DST).
For example, the New York session is the hours when all state and commercial organizations in NY start their work, in accordance with winter and summer DST.
Fortunately, there is no need to keep all these conditions in mind, since there are plenty of Forex market time converters available online, like www.worldtimebuddy.com, which can give you actual and precise information about the time zone you are interested in. You can add a few time zones into the chart, and see time at all zones simultaneously, which is very convenient.
The Asian session is often called the Tokyo session as well. It begins with the Sydney open (22:00 GMT) and ends with the Tokyo close (08:00 GMT).
Japan is the world's third-largest Forex trading center and even though we call it the Tokyo session, not only Japan is involved in trading in this period. There are also Hong Kong, Singapore and Sydney that participate actively as well.
Asian (Tokyo) trading session is not as liquid and volatile as other major sessions, however, it remains highly popular, because Japan is the third-largest Forex trading center in the world. The yen is the third most traded currency, which volume is participating in almost 17% of all Forex transactions.
- Japanese commercial companies (exporters) and central banks are the main players because Japan's economy is heavily exported.
- Liquidity can sometimes be thin, and most currency pairs stick within a range, especially if there is a big move in the preceding New York session
- Moves in Asian currency pairs like AUD/USD and NZD/USD will probably be stronger than in GBP/USD
- Most activity takes place at the beginning of the session because that time lots of economic news is released
- The Tokyo trading session is the first in the day, so it sets the tone for the following sessions around the world: traders look at what happened within the Asian trading session to plan further trading activity
- Despite being the first significant session in the day, the Asian session brings consolidation after the preceding New York session, and this is how the traders' behavior twirl the Forex trading cycle
Here you may have a look at the average Asian pip ranges for the major currency pairs. What does a pip range mean for your trading? The bigger the pip movements are, the bigger is the volatility and the more opportunities arise that increase the possibility to profit or loss from the trade. Use the best trading platform to get the best from the Asian session!