Impact of different trading sessions in trade execution
If you have made up your mind to trade in Forex and want to know about trading sessions, this article is the right pick for you. It will take you through all the basic discussions on various sessions and give you a credible and thorough overview on them.
Trading Sessions in the Forex
We assume you already know that the Forex market is an over-the-clock market. But do you really have an exact idea of what an over-the-clock market is? Those who think that it means its open for 24 hours every day are incorrect. The Forex industry doesn’t remain open for the entire day.
There will take time when the market will be alive, and traders in the United Kingdom will be able to earn money from an upward or a downward movement. The toughest and nearly impossible time to make money is when things seem to get struck by lightning and don’t move.
By knowing about various types of sessions, an investor can come to recognize the best possible time to earn money from trading in Forex.
- Market Hours
So, let’s debunk the nature of an over-the-clock market first. The entire FX world can be divided into four main trading sessions: the Sydney, the London, the Tokyo and the New York session.
In the past, the FX world has only had three trading sessions. These three sessions become active at three different times and keep trading alive for 24 hours. What traders do is they basically focus on one among all these sessions and make it their riding ground. Those who are involved in trading stocks, must have strong idea about the market hours. By taking trades by using the impact of trading hours, you can significantly improve your trade execution process.
The Asian, North American, and European markets together make these three periods. They are also familiar with the name of Tokyo, New York, and the London periods. The point at which a new calendar day starts is called the International Dateline.
- Period Starter
To try to become a main financial center of the world, New Zealand has been chosen to kick start trading activities for the FX market on the morning of a Monday. For most of the rest of the world, that time falls on a Sunday, though.
But in all these facts where the nonsense lies are in spite of being started in New Zealand, the period is named the Sydney session.
Once fired, the trading bullet shows no signs of stopping before Friday comes. There is only a little lull in the force between around GMT 19:00 and 22:00. This the lunch hour for Americans and people in Australia are only preparing to start trading for the day.
Beyond the weekends, Christmas and the first day of a new year are two other days when the market remains closed.
These are the opening and the closing times of every session:
Spring or Summer time that means From March/April to October/November
Local Time
Sydney Opens – 7:00 AM
Sydney Closes – 4:00 PM
Tokyo Opens – 9:00 AM
Tokyo Closes – 6:00 PM
London Opens – 8:00 AM
London Closes – 4:00 PM
New York Opens – 8:00 AM
New York Closes – 5:00 PM
Fall or Winter times that Means from October/November to March/April
Local Time
Sydney Opens – 7:00 AM
Sydney Closes – 4:00 PM
Tokyo Opens – 9:00 AM
Tokyo Closes – 6:00 PM
New York Opens – 8:00 AM
New York Closes – 5:00 PM
- Daylight Saving
Opening and closing times may vary in the months of October/November and March/April for some countries like the US, the UK, and Australia’s shift to or from the Daylight Saving-Time. Different countries shifting to or from the daylight-saving system happens on different days of a month. It makes the whole calculation of the times more complicated. However, the only country that doesn’t participate in the DTS system in Japan. So, the Tokyo period is less complicated than the other three sessions.
