Forex trading is a decentralized global market where currencies are traded 24 hours a day, five days a week. However, there are specific forex trading sessions that have unique characteristics, and traders need to understand them to maximize their profits. In this article, we will discuss the different forex trading sessions and what session it is now.
Forex Trading Sessions
There are four forex trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its unique characteristics in terms of trading volume, volatility, and liquidity.
The Sydney Session
The Sydney session starts at 10 pm GMT and ends at 7 am GMT. It is the first session of the trading week, and it is often referred to as the “Pacific Rim” session. During this session, the major currency pairs that involve the Australian dollar, New Zealand dollar, and Japanese yen are the most active.
The Tokyo Session
The Tokyo session starts at 12 am GMT and ends at 9 am GMT. It is often referred to as the “Asian” session. During this session, the major currency pairs that involve the Japanese yen are the most active. The Tokyo session is also known for its low volatility.
The London Session
The London session starts at 8 am GMT and ends at 5 pm GMT. It is often referred to as the “European” session. The London session is the most active forex trading session, and it accounts for more than 30% of the total forex trading volume. During this session, the major currency pairs that involve the British pound, Euro, and Swiss franc are the most active.
The New York Session
The New York session starts at 1 pm GMT and ends at 10 pm GMT. It is often referred to as the “North American” session. During this session, the major currency pairs that involve the US dollar are the most active. The New York session is also known for its high volatility.
What Forex Trading Session is it Now?
To determine what forex trading session it is now, traders need to consider the time zone they are in and the time zone of the forex market they are trading. For example, if a trader is in New York, they need to add five hours to GMT to determine the time in their local time zone. Therefore, if it is currently 3 pm in New York, it is 8 pm GMT.
To determine what forex trading session it is now, traders need to look at the currency pairs they are trading. For example, if a trader is trading the EUR/USD pair, they need to consider the trading sessions of both currencies. The Euro is most active during the London session, while the US dollar is most active during the New York session. Therefore, if a trader is trading the EUR/USD pair during the overlap of the London and New York sessions, they are trading during the most active forex trading session.
Conclusion
Forex trading sessions are essential for traders to understand as they have unique characteristics in terms of trading volume, volatility, and liquidity. Traders need to determine what forex trading session it is now to maximize their profits. By considering their local time zone and the trading sessions of the currencies they are trading, traders can determine the most active forex trading session and adjust their trading strategies accordingly.
