Forex trading is a global activity that takes place 24 hours a day, five days a week. This is possible because the market is open in different regions of the world at different times. These regions are called trading sessions, and traders can take advantage of them to trade currencies in different time zones.
One of the most important trading sessions is the Asian session, which is also known as the Tokyo session. This session is the first to open in the forex market, and it is the one that sets the tone for the rest of the day. In this article, we will explore what time the Asian session of forex EST is, and why it is important for traders.
What is the Asian session?
The Asian session is the first major trading session to open in the forex market. It starts at 7:00 PM EST and ends at 4:00 AM EST. During this time, the major financial centers in Asia are open for business, including Tokyo, Hong Kong, Singapore, and Sydney. These centers are important because they represent some of the largest economies in the world, and they are major players in the forex market.
Why is the Asian session important?
The Asian session is important for several reasons. First, it is the first major trading session to open in the forex market. This means that it sets the tone for the rest of the day. If there is significant movement in the Asian session, it can impact the rest of the trading day. This is particularly true for currency pairs that involve the Japanese yen, such as USD/JPY and EUR/JPY. The yen is often used as a safe-haven currency, so if there is volatility in the Asian session, traders may flock to the yen, which can impact other currency pairs.
Second, the Asian session is important because it represents a significant portion of the forex market. According to a report by the Bank for International Settlements, the Asian trading session accounts for approximately 21% of all forex trading volume. This is second only to the European trading session, which accounts for approximately 39% of all forex trading volume.
Finally, the Asian session is important because it is a time when traders can take advantage of volatility in the forex market. Volatility is a measure of how much a currency pair moves over a given period of time. When there is volatility in the market, traders can make profits by buying and selling currency pairs at the right time. The Asian session is known for its volatility, particularly in currency pairs involving the Japanese yen.
What are some tips for trading during the Asian session?
Trading during the Asian session can be challenging, particularly for traders in the United States. The time difference can make it difficult to stay up all night to monitor the market. However, there are some tips that traders can follow to make the most of the Asian session.
First, traders should focus on currency pairs that are active during the Asian session. These include USD/JPY, EUR/JPY, AUD/USD, and NZD/USD. These pairs are particularly active during the Asian session because they involve currencies that are traded in the Asian financial centers.
Second, traders should pay attention to economic data releases that are scheduled during the Asian session. These releases can have a significant impact on currency pairs, particularly if they are unexpected. Traders should be aware of the economic calendar and plan their trades accordingly.
Finally, traders should use stop-loss orders to manage their risk. Stop-loss orders are orders that are placed to sell a currency pair at a certain price. They can help traders limit their losses if the market moves against them.
Conclusion
The Asian session is an important trading session in the forex market. It is the first major trading session to open, and it represents a significant portion of the forex market. Traders can take advantage of the volatility in the Asian session by focusing on currency pairs that are active during this time and by paying attention to economic data releases. By following these tips, traders can make the most of the Asian session and increase their chances of success in the forex market.
