Forex trading is a global market that operates 24 hours a day, five days a week. The market is open in different time zones, and traders can take advantage of the different sessions to trade currencies. The New York session is one of the most significant sessions in forex trading, attracting traders from around the world. In this article, we will discuss what time the New York session starts in forex and why it is an essential trading session.
The New York session is the second largest forex trading session after the London session. It starts at 8:00 AM EST and closes at 5:00 PM EST. The New York session is also known as the American session or the North American session. It overlaps with the European session for about three hours, creating a high trading volume and liquidity in the market.
The New York session is significant because it covers two of the largest financial centers in the world- New York and Toronto. New York is the financial capital of the United States, while Toronto is the financial capital of Canada. These two cities have a significant impact on the global economy, and any news or events that affect them can have a significant impact on the forex market.
During the New York session, traders can expect high volatility and liquidity in the market. This is because many economic reports, news releases, and corporate earnings announcements are released during this session. Some of the reports that can affect the market during the New York session include Non-Farm Payrolls, Gross Domestic Product, Consumer Price Index, Retail Sales, and many others.
The New York session also attracts many traders because of its tight spreads and low trading costs. This is because many banks and financial institutions, including the Federal Reserve Bank of New York, are located in this region, providing liquidity and stability to the market. As a result, traders can trade major currency pairs like EUR/USD, USD/JPY, GBP/USD, and USD/CHF at competitive prices.
Another reason why the New York session is important is that it is the last session before the weekend. Traders who hold positions during this session must consider the potential impact of any news or events that may occur over the weekend. They must also consider any gaps that may occur when the market reopens on Monday.
In conclusion, the New York session is an essential trading session in the forex market. It starts at 8:00 AM EST and closes at 5:00 PM EST, overlapping with the European session for about three hours. The New York session is significant because it covers two of the largest financial centers in the world, New York and Toronto, and attracts many traders because of its high volatility, liquidity, and low trading costs. Traders who participate in the New York session must be aware of the potential impact of any news or events that may occur during this session and over the weekend.
