Foreign exchange (forex) trading is a global market that operates 24 hours a day, five days a week. This means that traders can trade at any time of the day or night, depending on their preference and location. However, it is important to note that the forex market is not open on weekends, which means that trading hours are limited from Monday to Friday.
Australia is one of the largest forex trading markets in the world, with a significant number of traders based in the country. As a result, it is important for Australian traders to understand the forex trading sessions in their local time.
Forex trading sessions are divided into four main sessions, which include the Sydney session, Tokyo session, London session, and New York session. Each session has its own unique characteristics, and traders need to consider these when choosing the best time to trade.
The Sydney session is the first session to open, and it starts at 10 pm GMT (Greenwich Mean Time), which is 8 am in Australian Eastern Standard Time (AEST). This session is considered the least volatile of all the sessions, and it is usually dominated by traders from Australia and New Zealand.
The Tokyo session starts two hours after the Sydney session, at 12 am GMT, which is 10 am in AEST. This session is dominated by traders from Japan and other parts of Asia, and it is known for its high volatility. Traders who prefer to trade currency pairs involving the Japanese yen (JPY) should consider trading during this session.
The London session is the most volatile session of all, and it starts at 8 am GMT, which is 6 pm in AEST. This session is dominated by traders from Europe, and it is known for its high trading volume. Traders who prefer to trade currency pairs involving the euro (EUR) or British pound (GBP) should consider trading during this session.
The New York session starts four hours after the London session, at 12 pm GMT, which is 10 pm in AEST. This session is dominated by traders from the United States, and it is known for its high trading volume and volatility. Traders who prefer to trade currency pairs involving the US dollar (USD) should consider trading during this session.
It is important to note that trading during the overlap between sessions can also be profitable, as there is usually an increase in trading volume and volatility. For example, the overlap between the London and New York sessions is known as the “golden hours,” and it is considered the best time to trade.
In summary, the forex trading sessions in Australian time start with the Sydney session at 8 am AEST, followed by the Tokyo session at 10 am AEST, the London session at 6 pm AEST, and the New York session at 10 pm AEST. Traders should consider the characteristics of each session when choosing the best time to trade, and they should also consider trading during the overlap between sessions for increased trading volume and volatility.
