ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Understanding the Forex Trading Hours

Updated on December 31, 2014
Forex trading shifts from one continent to a another in a 24 hour session.
Forex trading shifts from one continent to a another in a 24 hour session. | Source

Introduction.

Currency trading is a lucrative exchange markets in the world. With a 24 hour trading sessions daily, in exceptions of weekends, there are well over five trillion dollars worth of transactions are carried out. The best opportunities to realize significant profits are when two trading sessions overlap . Ask George Solos, the Guru in Forex trades; you will hardly succeed in Forex trading without knowing which session is active when. Understanding the Forex trading hours is key.

A trading session begins in Sydney at 2200Hours GMT and comes to a close in New York 24 hours later. In between, Tokyo and Sydney come to live. Your chance to benefit from price fluctuations is tied to which center is active when and which currencies have the greatest price movements. So which times are the best for Forex trading?

Trading sessions overlap over the course of the 24 Hour session. In addition, different currencies have the greatest price fluctuations in specific trading hours. Here is a preview of leading Forex centers and their hours of operation;

New York Trading Session starts at 1300 GMT.
New York Trading Session starts at 1300 GMT. | Source

American session

THe American session opens in New York at 1300Hrs GMT and remains active through to 2200Hrs GMT. Since there is a four hour overlap between New York session and that of London, Forex market is highly volatile at this time. Based on the size and diversity of the two markets, many currency pairs are traded successfully during this overlap. However, the ember dies off at 1700Hrs GMT when the London Forex center draws to a close.

European session

The European kicks off at 0800 Hours GMT. Owing to a one hour overlap between the Tokyo and London sessions, the market remains active till the Tokyo Forex closes down. You can bet there are massive transactions and minimum currency value fluctuations. As such, chances are good to make a few pips from setting up transactions.

Asian Session


Just as the European market is coming to live, the Tokyo session is closing after an eight Hour trading session. The Tokyo session opens up at 0000 Hours GMT. It is characterized by massive transactions on Asian paired currencies Yen-the third most traded currency- dominating transactions. The Asian session attracts commercial entities and the Central bank. Price movements can be caused by release of economic data.

Sydney has rose to be an important Forex trading center.
Sydney has rose to be an important Forex trading center. | Source

Sydney

The Australian center comes to live after the American session has come to a close at 2200 GMT. It’s in operation for two hours before the Tokyo opens its doors to Forex traders. It marks the beginning of a day Forex trading session. Though small in size,it is hyperactive on its Sunday afternoon session. This, perhaps, is due to inactivity over the weekend. Chances are, you can make some pips in the opening hours in the Sydney trading session and back out as the trading progresses on.

Video Resources explaining Forex Trading Sessions.

Singapore

Singapore accounts for up to six percentage of all Forex transactions. Indeed, Singapore might just be new Asian Forex trading lead center in future. The Forex trading hours in Singapore are during the Asian session.

Recommendation.

Success in Forex trading is heavily pegged on choosing to trade in the right time. Your understanding and subsequent timing on factors that influence trading, such as press releases and economic briefing is paramount. Trading sessions in which there is an overlap such as those of New York and London present a big opportunity to cash in on the price fluctuation.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)