To start making money online through the forex market, you
need to be well informed about forex
trading sessions.
The forex market is a 24 hour business. However, you don’t
need to trade in all the hours. You can only trade in a suitable session that
pertains to your region.
There are 4 basic forex
trading sessions in the forex market. They Include:
1. Sidney or Australian
session
2. Asian or Tokyo session
3. London or European
session
4. New York or North American
session
Here are more details about each of the trading sessions:
·
The Sidney session starts
at 5.00 PM EST on Sunday evening and every other day and closes at 2.00 AM EST.
·
The Sidney session
starts just as the New York session is closing at 5.00 PM EST.
·
The Sidney session overlaps
with the Asian session which opens at 7.00 PM EST which opens 2 hours ahead.
·
Once the Sydney session
closes, the Asian session continues to trade till 4.00PM EST.
·
The London Session
starts at 4.00 AM EST just as the Asian session is closing at the same time.
·
The London session is
usually the most active trading session. This is because most of the major
currency pairs are usually traded in the session.
·
As the London session
is still open, the New York sessions opens at 8.00 AM EST. This simply makes
the forex market to be more active by the day.
·
The London session closes
at 12.00 noon EST while the New York session continues to trade until 5.00 PM
EST.
·
As the New York session
is closing at 5.00 PM EST, the Sydney session starts all over again for the
next day. The cycle continues that way.
·
The forex market
remains closed during the weekend. The break starts every Friday afternoon when
the New York Session closes. The market resumes by Sunday evening when the
Sydney session resumes.
Choosing the Best Trading Session
The best hours to trade the forex market is often when the
trading sessions overlap with each other.
You have to bear this in mind if you’re
thinking of making money online through the forex market.
Here are the details
of the overlaps:
·
The London session overlaps
with the New York session between 8.00 AM EST and 11.00 AM EST. This is often
the most liquid period in the forex market.
Most of the major currency pairs
are usually traded within the period. Many traders are also very active within
the period.
·
The Asian session
overlaps with the London session between 12.00 midnight and 3.00 AM EST. At
this period, the Japanese Yen is often more active and highly traded.
·
The Sydney session overlaps with the Asian
session between 9.00 PM EST and 12.00 midnight. At this period, the New Zealand
dollar and the Australian dollar are usually very active.
In all, most traders are usually active when the forex trading sessions
overlaps each other. You can make your trading decisions within such periods.
You’re sure of making money online through the forex market when you trade
according to the forex trading sessions.