The New York session, also known as the North American session, is one of the three major forex trading sessions, along with the Asian and European sessions. It is the most active trading session in the forex market, accounting for approximately 19% of the daily trading volume. The New York session starts at 8:00 AM EST and ends at 5:00 PM EST.
The forex market is a decentralized market, meaning that it operates 24 hours a day, five days a week. The trading day begins in the Asian session, followed by the European session, and then the North American session. Each session has its own characteristics and trading opportunities, depending on the economic news releases, market sentiment, and liquidity levels.
The New York session is particularly important because it overlaps with the European session, creating a high liquidity period known as the “power hours”. During this time, traders can experience higher volatility and tighter spreads, which can lead to more profitable trading opportunities.
The New York session is also influenced by major economic news releases, such as the US non-farm payrolls report, which is released on the first Friday of every month. This report can have a significant impact on the US dollar and other major currency pairs. Traders should be aware of these news releases and adjust their trading strategies accordingly.
The end of the New York session is marked by the closing of the New York Stock Exchange (NYSE) at 4:00 PM EST. However, forex trading continues for an additional hour until 5:00 PM EST. During this time, the market tends to slow down as traders start to wind down their positions for the day.
It is important to note that while the New York session officially ends at 5:00 PM EST, the forex market never truly closes. Trading continues throughout the night in the Asian session, creating opportunities for traders who prefer to trade during off-peak hours.
In conclusion, the New York session is a crucial trading session in the forex market, accounting for a significant portion of daily trading volume. The session starts at 8:00 AM EST and ends at 5:00 PM EST, with the last hour being characterized by lower liquidity and slower trading activity. Traders should be aware of major economic news releases and adjust their trading strategies accordingly. While the New York session officially ends at 5:00 PM EST, the forex market never truly closes, providing opportunities for traders who prefer to trade during off-peak hours.