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What forex pairs to trade during sessions?

Forex trading is a popular way of making money online, but it is not as easy as it sounds. There are many factors that come into play when you decide to trade forex. One of the most important factors is the forex pairs that you decide to trade during different sessions. In this article, we will explain what forex pairs to trade during sessions.

Forex Pairs

Forex pairs refer to the currencies that are traded in the forex market. In forex trading, currencies are always traded in pairs, such as USD/JPY or EUR/USD. The first currency in the pair is known as the base currency, while the second currency is known as the quote currency.

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During forex trading, the value of the base currency is compared to the value of the quote currency. For example, if the EUR/USD pair is trading at 1.1000, it means that 1 euro is worth 1.1000 US dollars.

Forex Trading Sessions

The forex market is open 24 hours a day, five days a week. However, different forex pairs are more active during different trading sessions. There are three major trading sessions in the forex market:

1. Asian Session: This session starts at 12:00 AM GMT and ends at 9:00 AM GMT. The major currencies that are traded during this session are the Japanese yen (JPY), Australian dollar (AUD), and New Zealand dollar (NZD).

2. European Session: This session starts at 7:00 AM GMT and ends at 4:00 PM GMT. The major currencies that are traded during this session are the euro (EUR), British pound (GBP), and Swiss franc (CHF).

3. American Session: This session starts at 12:00 PM GMT and ends at 9:00 PM GMT. The major currencies that are traded during this session are the US dollar (USD), Canadian dollar (CAD), and Mexican peso (MXN).

What Forex Pairs to Trade During Sessions

The forex pairs that you decide to trade during different sessions depend on your trading strategy and goals. However, there are some general guidelines that you can follow:

1. Asian Session: The Asian session is known for its low volatility and low trading volume. Therefore, it is best to trade forex pairs that involve the Japanese yen (JPY), Australian dollar (AUD), and New Zealand dollar (NZD) during this session. These currencies are less affected by global economic events and are more stable during this session.

2. European Session: The European session is the most active session in the forex market. Therefore, it is best to trade forex pairs that involve the euro (EUR), British pound (GBP), and Swiss franc (CHF) during this session. These currencies are highly influenced by economic events and news releases from the European Union.

3. American Session: The American session is known for its high volatility and high trading volume. Therefore, it is best to trade forex pairs that involve the US dollar (USD), Canadian dollar (CAD), and Mexican peso (MXN) during this session. These currencies are highly influenced by economic events and news releases from the United States.

Conclusion

Forex trading can be a profitable venture if you choose the right forex pairs to trade during different sessions. The forex pairs that you decide to trade during different sessions depend on your trading strategy and goals. However, it is important to consider the volatility and trading volume of different forex pairs during different sessions. By following these guidelines, you can make informed decisions and improve your chances of making profits in the forex market.

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