6/16/2023 0 Comments Forex market time converterBecause London’s session overlaps with Asia in the evening and American in the afternoon, the forex market becomes highly liquid and volatile.What to expect during London Trading Session? It is no wonder that 43% of all the forex transactions take place during the London session. And during these overlapping sessions, the market becomes more volatile and many currency pairs observe major movements. Due to its location, the London trading session overlaps with Asian and North American sessions. London is often considered the financial capital of the world. Although the European session coincides with many forex markets (Frankfurt, Amsterdam, etc.), it is London that dictates the forex market. Most of the movements are observed in early trading sessions.Įuropean forex market activities begin just when the Asian trading session is about to close for the day.That’s why major currency-pair movements are observed in USD/JPY, AUD/USD, and NZD/USD, rather than non-Asian currency pairs like USD/EUR or GBP/EUR. Economies located in the Asia Pacific (US, Japan, Australia, etc.) become more active during the Asian session.As Japan is an export-driven economy and China also has the same economic characteristics, a lot of truncations take place every day. The main players during the Tokyo session are central banks and companies.What to expect during Asian Trading Session? Sydney forex trading session is from 5PM to 2AM. While the Japanese forex market accounted for 4.5%, Singapore and Hong Kong together accounted for 7.6% of the total volume. Interestingly, these two centers are seeing more trading volume presently than Tokyo. However, it’s not just the Tokyo, Singapore and Hong Kong are also important forex centers in the Asian market. Japan is the third-largest forex trading spot in the world, accounting for nearly 20% of all the forex transactions during Asian trading sessions. GBP/CHF and GBP/JPY also see a fair amount of trading. The majority of forex transactions happen in USD/JPY currency pair. With the opening, the Tokyo session takes the bulk of the Asian forex trading. Note: Hours in EST (Eastern Standard Time) Asian Trading SessionĪlthough the first sunrise is observed in New Zealand, the major trading activities begin in Tokyo (Japan). Both Sydney and Wellington sessions can be considered part of the Asian trading session. Note that, although Australia is technically considered a part of the Oceania continent, it is not so in the forex market. It would be much easier if we group different forex markets based on the continent. For instance, London and Frankfurt are located in the same time zone, there is just a one-hour difference between their opening and closing times. On the other hand, some forex markets overlap with each other or work simultaneously. These trading sessions work like a domino effect: one closes, another opens. These three sessions are often referred to as the “forex 3-trading system”, the forex market’s most active sessions.Īpart from the above listed major trading sessions, active traders also take account of the four other Minor trading sessions: Rather than focusing on trade in all sessions, expert traders often focus on one of these sessions. Major Forex trading sessions can be divided into four:Īmong them, three trading sessions are traditionally more important: Tokyo (Asian), London (European), and New York (North American). Forex Trading Sessions for Kenyan traders Let’s get started with how the forex market works in different time zones. As many new traders are joining the forex market from African countries including Nigeria and Kenya, this article will be helpful for them. If you understand the various risks plus the time-differences, you will be best positioned to make money when the market goes up, and even when it goes down. Thus, understanding time differences, when different forex markets overlap, and high/low trading sessions is as important as making trade strategies. The forex market can be very different than yesterday. Unlike stock markets that are well connected and follow a standard time, foreign exchange runs on the normal business hours of four different time zones making it a volatile, 24/5 market. Running almost 24 hours a day in different time zones, many new traders hardly consider the impact of how these time differences can make impact on their investments. The forex market is the world’s largest financial market. What is the Best Time to Trade Forex in Kenya?
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