Home Courses Course-01 13 – Different Sessions In The Forex Market

13 – Different Sessions In The Forex Market

50
0

We have covered most of the W’s about the Forex market. Now that you know ‘what’ forex is, ‘why’ to trade in forex, and ‘who’ trades the in this market, it is time to discuss the about ‘when’ you can trade in the forex market.

You must be under the impression that you can trade anytime in the forex market as it is open 24 hours. Well, the market indeed is open 24 hours, but it does not mean you can trade anytime. This is because the forex market isn’t active the entire day. And, if the market isn’t active, you cannot make money as there won’t be any significant moves in the market.

Forex Market Trading Sessions

There are different trading sessions in the forex market. However, we don’t consider the trading sessions of all the countries. Nevertheless, we do focus on four major trading sessions, as the market is super active in these sessions.

The four major trading sessions are:

The Sydney session

The Tokyo session

The London session

The New York session

The open and close time for some sessions varies based on the season. There is one set of timing during Spring/summer and another set during Fall/Winter.

Spring/Summer in the U.S

This starts from March/April and goes on until October/November.

Session Local time EST
Open Close Open Close
Sydney 7:00 AM 4:00 PM 5:00 PM 2:00 AM
Tokyo 9:00 AM 6:00 PM 8:00 PM 5:00 AM
London 8:00 AM 4:00 PM 3:00 AM 11:00 AM
New York 8:00 AM 5:00 PM 8:00 AM 5:00 PM

EST – Eastern Standard Time

Fall/Winter in the U.S

Begins from October/November and ends during March/April

Session Local time EST
Open Close Open Close
Sydney 7:00 AM 4:00 PM 3:00 PM 12:00 AM
Tokyo 9:00 AM 6:00 PM 7:00 PM 4:00 AM
London 8:00 AM 4:00 PM 3:00 AM 11:00 AM
New York 8:00 AM 5:00 PM 8:00 AM 5:00 PM

 

If you observe, the actual open and close timings are based on the country’s local business hours, that is, somewhere between 7:00 AM and 6:00 PM.

We can see that in some countries there is variation in the open and close time. This is due to the shift to/from Daylight Saving Time (DST).

From the above table, we can also notice that there is an overlap in the schedules between each trading session. In other words, there is a period of time where two sessions are trading at the same time. For example, during the summer, from 3:00 AM to 4:00 AM EST, the Tokyo session and the London session are both open. Similarly, in winter, from 8:00 AM to 12:00 PM EST, the New York session and the London session overlap.

From this, it is quite obvious that during the overlap hours, the market is extremely liquid and volatile because there is more volume in the market.

Hence, most of the traders prefer trading during these busy hours of the market as they can catch hold of significant moves.

When does the Sydney session and the Tokyo session overlap during Fall/Winter?

Correct! Wrong!

The New York session begins from _____ and ends at _____.

Correct! Wrong!

The Fall/Winter trading session in the U.S is between

Correct! Wrong!

How many major trading sessions are there in the market?

Correct! Wrong!

The Forex market is open ______.

Correct! Wrong!

LEAVE A REPLY

Please enter your comment!
Please enter your name here