So far, we looked at what trading is, the basics of how to do it, as well as the main objectives of the industry. But one question remains unanswered: when should you trade?
Well, we previously mentioned that the forex market is open 24/5, but before choosing the “right time” to trade, we first need to have a look at the trading sessions in general.
There are four main trading sessions in forex, and they consist of the Sydney session, the Tokyo session, the London session, and the New York session. Traders usually like to focus on the high activity trading sessions, rather than trade 24 hours a day.
Now, the market, besides weekends, is also closed on Christmas Day, and New Year’s. Everyone deserves some holidays, after all, even the markets!
Let’s have a look at the open and close times for each session.
The open and close times of each location are usually based on their local business hours, so their trading day begins between 7 and 9 AM local time.
You might have noticed that some trading sessions seem to overlap. What does this mean?
Well, some traders tend to start trading during that overlap, because that’s when there’s a lot of movement going on in the market.
Now you know the forex trading sessions!
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