The forex market hours clock is very important, and knowing exactly when the markets open and close can help you to plan your trading sessions. It is also important to note that there are seasonal variations to the times when the markets open and close. The London session is one of the most active sessions in the forex market. During this session, a lot of big institutions are active. Therefore, the volume of trading activity is higher. This results in higher volatility, and this also increases the likelihood of breakout strategies. Some of the major pairs that are traded during this session are EUR/USD, GBP/USD, and USD/JPY. Traders can also trade other currency pairs during this time.
Forex Market Clock
Depending on your trading style, you may want to consider choosing a session that offers less volatility. In this case, an Asian session may be a good choice. However, it is not for everyone. These pairs have the potential to yield high returns on investment. However, these pairs require careful analysis and use of technical indicators. To be a successful trader, you need to understand how to analyze price movements. In the London session, there is a lot of activity, but you can also find low spreads. The spread of the EUR/USD pair is usually between 0.1 and 2 pips, which makes it easier to find entry and exit points. The New York session is one of the best times to trade forex. There are a few reasons why. One is the volume, which is greater than that of the other sessions. Another reason is that the liquidity of the major forex pairs is not as tight as in other regions.
The London session follows the New York session. Both markets share four hours of trading. This allows for higher liquidity and lessened spreads. The European and American sessions combine to increase overall market activity and volatility. For most traders, the most significant newsworthy event occurs in the first part of the European session. That is not to say that the Tokyo session is not busy. In fact, the Tokyo session may actually be more active than the London session during the overlap.
However, if you are interested in trading the best of both worlds, you will want to wait until the London session opens. Once the London session opens, the best time to trade will likely be in the early morning hours of the day based on the forex market hours clock.
Trade With The Best Brokers
The Tokyo Forex session is not to be confused with the London one. Like many of its more lucrative counterparts, the forex industry has its own fair share of oligarchs and stooges. Although the market for the JPY is a relatively small fry in comparison to the more established currencies, it nevertheless serves as a key trading artery for those who are in the know. The likes of Goldman Sachs, Credit Suisse, and Morgan Stanley have all taken a stake in the Japanese economy. Some of the fund flows are attributed to companies closing their books for the first half of the year.
There are numerous online platforms that allow savvy traders to do their trading from the comfort of their own homes. One of the more popular destinations is AvaTrade, which offers free demos and an array of lucrative forex and CFD packages. In addition to its stellar customer service, the company also offers access to the latest market research and data, making it a top choice for novices and experts alike.
Seasonal Variations
Forex trading hours are influenced by seasonality and daylight saving time. During certain months, the markets are less active. On the other hand, during other months, there is increased activity. In order to know the best times to trade in the Forex market, you need to understand how these variations occur. For instance, AUD/USD and NZD/USD show inverse seasonality, meaning they perform better in the spring than in the winter. EUR/USD is usually in the middle of a long run of gains, but it has started losing a bit recently.
Another example is that USD/SEK shows a clear preference for spring. It performs its best in the month of March. Similarly, USD/CAD is the worst during summer. Nevertheless, most pairs perform well in the spring and autumn.
The Bottom Lines
The forex market is open for 24 hours a day, but there are certain periods of the day that are more active than others. This is determined by how many traders are active and how much liquidity they have available. Trading during these hours results in more volatility.
