Forex trading occurs on a 24-hour basis. However, trading sessions skips from one country to another with a few overlapping sessions. One of the most crucial factors in online forex trading is choosing the right currency trading hours depending on the specific currencies that you are focusing on. The forex trading market is continuous and there are many opportunities to trade within the twenty-four hour period.
There are generally three trading sessions during which the dominant currency of the regions is mostly actively traded. The Asian trading session is usually in-line with business hours in Tokyo where the Japanese Yen is the most active. However, the Asian trading sessions have been noted as the least active of the major trading sessions. If you were focusing your trade on this currency, the best time to monitor and even make orders would be during Tokyo business hours.
The European trading session partially overlaps with the Asian trading session. It is considered the best session to trade because a large amount of forex transactions take place during this session and economies in both eastern and western hemispheres are active.
Second to Europe in trading volumes is the USA trading session, especially during New York Business hours. Up to 19% of forex, transactions occur in New York. The New York and London trading sessions also overlap for at least four hours. The overlapping sessions bear the highest trade volumes and equally high chances of making huge gains in forex trading. Trading currency pairs of currencies associated with the two overlapping regions, such as the USD/EUR, is most profitable at this time.
Other less dominant trading session include the Australian trading session during Sidney business hours.
Your broker will open a trading platform within a certain time frame depending on your location on the globe. It is advisable to use the Universal clock to choose your peak trading hours rather than using your broker platform time since it is often irrelevant. You can find the Market Hours Monitor online that indicates all the various trading sessions in different regions for all trade currencies.
The post Know Your Currency Trading Hours appeared first on Financially Poor.
Related posts:
Have Fun With This Updated Past Time
Introduction to Online Trading
An Introduction to Forex Trading