Here at Sharp Trader our general forex trading hours open at European Forex Session London The European session takes over in keeping the currency market active just before the Asian trading hours come to a close. Trading Sessions For day traders the most productive hours are between the opening of the London markets at As such, it comes as little surprise that activity in New York City marks the high in volatility and participation for the session. As trader, you have two main options:
Breaking a 24-Hour Forex Market into Manageable Trading Sessions
While some activity can occur depending on fundamental news that may occur over the weekend, generally any movement in the currency pairs is negligible, and trading liquidity is extremely thin, making trade execution difficult and spreads very wide.
Given differences among traders, some will keep positions open over the weekend while others will close all open positions before 4 PM Eastern on Friday. You should now have the information that you need to understand trading hours in the currency market.
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A trader needs to be aware of times of market volatility and decide when is best to minimize this risk based on their trading style. Traditionally, the market is separated into three peak activity sessions: These three periods are also referred to as the Tokyo, London and New York sessions. These names are used interchangeably, as the three cities represent the major financial centers for each of the regions. The markets are most active when these three powerhouses are conducting business, as most banks and corporations make their day-to-day transactions in these regions and there is a greater concentration of speculators online.
We'll now take a closer look at each of these sessions. When liquidity is restored to the forex or FX market at the start of the week, the Asian markets are naturally the first to see action.
Unofficially, activity from this part of the world is represented by the Tokyo capital markets , which are live from midnight to 6 a. However, there are many other countries with considerable pull that are present during this period including China, Australia, New Zealand and Russia. Considering how scattered these markets are, it makes sense that the beginning and end of the Asian session are stretched beyond the standard Tokyo hours. Asian hours are often considered to run between 11 p.
GMT, accounting for the activity within these different markets. The European session takes over in keeping the currency market active just before the Asian trading hours come to a close.
This FX time zone is very dense and includes a number of major financial markets that could stand in as the symbolic capital. London has taken the honors in defining the parameters for the European session to date. Official business hours in London run between 7: This trading period is also expanded due to other capital markets' presence including Germany and France before the official open in the U. Therefore, European hours typically run from 7 a. The Asian markets have already been closed for a number of hours by the time the North American session comes online, but the day is only halfway through for European traders.
The Western session is dominated by activity in the U. As such, it comes as little surprise that activity in New York City marks the high in volatility and participation for the session. Taking into account the early activity in financial futures , commodity trading and the concentration of economic releases, the North American hours unofficially begin at 12 p.
With a considerable gap between the close of the U. GMT as the North American session closes. Of course, the presence of scheduled event risk for each currency will still have a substantial influence on activity, regardless of the pair or its components' respective sessions.