It’s time to learn about the different forex trading sessions.
Yes, it is true that the forex market is open 24 hours a day. But that doesn’t mean it’s always active the entire day.
You can make money trading when the market moves up. And you can make money when the market moves down.
BUT you will find it very difficult trying to make money when the market doesn’t move at all.
And believe us, there will be times when the market is as still.
This lesson will help determine when the best times of the day are to trade.
Forex Market Hours
Before looking at the best times to trade, we must look at what a 24-hour day in the forex world looks like.
The forex market can be broken up into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session.
Historically, the forex market has three peak trading sessions.
Traders often focus on one of the three trading periods, rather than attempt to trade the markets 24 hours per day.
This is known as the “forex 3-session system“.
These sessions consist of the Asian, European, and North American sessions, which are also called Tokyo, London, and New York sessions.
Some traders prefer to differentiate sessions by names of the continent, other traders prefer to use the names of the cities.
The combined share of the top four trading centers, which includes London, New York, Singapore, and Hong Kong amounts to 75% of global FX turnover.