The forex market is the largest and most liquid financial market in the world. It operates 24 hours a day, 5 days a week, spanning different time zones across the globe. As a result, it is important for traders to be aware of the different forex sessions and the market activity during each session. In this article, we will explain what forex session it is now and provide a brief overview of the different forex sessions.
Forex Session Overview
The forex market is open 24 hours a day, 5 days a week. However, the market is not equally active throughout the day. Forex trading sessions refer to the time periods when the forex markets are most active. The four major forex trading sessions are the Sydney session, the Tokyo session, the London session, and the New York session.
Each forex trading session has its unique characteristics and trading opportunities. Understanding the different forex sessions can help traders identify the best time to trade and take advantage of market volatility.
What Forex Session is it Now?
Currently, the forex market is in the London session. The London session is the most active forex trading session, accounting for approximately 35% of all forex transactions. It opens at 8:00 AM GMT and closes at 4:00 PM GMT.
During the London session, traders can expect high volatility in the forex market, especially during the overlap with the New York session. This is because the London and New York sessions are the most active and have the highest trading volume.
The London session is also known for its liquidity, which means that traders can easily enter and exit trades at their desired price points. This is due to the high number of market participants and the presence of major financial institutions in London.
Best Time to Trade Forex
The best time to trade forex depends on the trader’s strategy and trading style. However, there are certain times when the forex market is more active and offers more trading opportunities.
The overlap between the London and New York sessions, which occurs from 12:00 PM GMT to 4:00 PM GMT, is considered the best time to trade forex. During this time, traders can expect high volatility and trading volume, which creates more opportunities for profitable trades.
The Sydney and Tokyo sessions, on the other hand, are less active compared to the London and New York sessions. However, they offer unique trading opportunities, especially for traders who prefer to trade during low volatility periods.
In conclusion, understanding the different forex sessions is crucial for traders to identify the best time to trade and take advantage of market volatility. Currently, the forex market is in the London session, which is the most active forex trading session. Traders can expect high volatility and liquidity during this time, especially during the overlap with the New York session.
However, the best time to trade forex ultimately depends on the trader’s strategy and trading style. Traders should identify the times when the market is most active and align their trading strategy accordingly.