Forex trading is a 24-hour market that operates five days a week. This means that traders have the opportunity to trade currencies at any time, from anywhere in the world. However, different sessions are more active than others, and traders need to understand the different sessions to maximize their trading opportunities. One of the most important sessions in forex is the New York session. In this article, we will explore what time the New York session is in forex and why it is significant.
What is the New York session in forex?
The New York session is one of the three major forex trading sessions, alongside the London session and the Asian session. It is also referred to as the North American session since it is based in New York City, which is the financial capital of North America. The New York session is the second most active session after the London session, and it accounts for approximately 20% of all forex transactions.
When does the New York session start and end?
The New York session starts at 8:00 AM EST (1:00 PM GMT) and ends at 5:00 PM EST (10:00 PM GMT). During this period, the forex market is highly active, and traders can expect high volatility, especially during the overlap of the London and New York sessions. This overlap period typically lasts for three hours from 8:00 AM EST to 11:00 AM EST.
Why is the New York session significant?
The New York session is significant for several reasons. Firstly, New York is one of the largest financial centers in the world, and it hosts some of the most significant banks and financial institutions. The New York session is, therefore, a hub of forex trading activity, and it attracts traders from all over the world.
Secondly, the New York session overlaps with the London session, which is the most active trading session in forex. This overlap creates a high level of liquidity and volatility, which presents traders with numerous trading opportunities. The overlapping period between the two sessions is, therefore, considered the most active time of the day for forex trading.
Thirdly, the New York session is the last major session of the trading day. This means that traders can use this session to close their positions or adjust their trading strategies before the market closes for the day. Traders can, therefore, use the New York session to take advantage of any market movements that have occurred during the day and to prepare for the next trading day.
What are the major currency pairs traded during the New York session?
The New York session is characterized by high trading volumes on several currency pairs. These include:
1. EUR/USD – This is the most traded currency pair in the forex market, and it accounts for approximately 24% of all forex transactions. The New York session is particularly active for this pair due to the overlap with the London session.
2. USD/JPY – This is the second most traded currency pair in the forex market, and it accounts for approximately 17% of all forex transactions. The New York session is particularly active for this pair due to the high trading volumes from Japanese investors.
3. GBP/USD – This currency pair is also highly traded during the New York session due to the overlap with the London session.
4. USD/CHF – This currency pair is also popular during the New York session due to the high trading volumes from Swiss investors.
The New York session is one of the most significant trading sessions in forex, and it provides traders with numerous trading opportunities. Traders need to understand the timing of the New York session and its significance to maximize their trading opportunities. The New York session is particularly active during the overlap with the London session, and traders can take advantage of the high liquidity and volatility to make profitable trades.