In the last few years forex trading turned from an unknown investment opportunity to one of the most popular online career. Trading currencies is attractive due to the fact that it is open day and night. A 24 hour market allows you to join in any time for as long as you want to.
There are several time zones and therefore different trading sessions - European time zone (London), North American time zone (New York) an Asian time zone (Tokyo). The most exciting session is American, where main currency pairs are traded.
New York opening hours are 14:00 GMT – 22:00 GMT
Chicago forex markets open at 15:00 GMT and close at 23:00 GMY
All the major currency pairs including the commodity pairs are traded in the New York session. These include the EUR/USD, GBP/USD, USD/CHF, USD/JPY, USD/CAD, AUD/USD and NZD/USD.
When you hear that forex is available 24 hours a day, your first perception is that traders trade nonstop. While technically it is possible, most traders prefer to stick with one or two time zones and seek trading opportunities there, especially when two time zones overlap.
When you select one specific session to trade in, you have to learn everything about it, especially which economic news influences it the most and when it is most active.
- A trading session is the primary trading hours for a given asset and locale.
- The typical session for U.S. stocks is the most clearly defined trading session.
- The working hours of the NYSE mark the most active period for trading within a 24-hour time period.
What is the best time to trade currency pair?
What should I trade during New York session?
- Nowadays, in this category we can include EUR/USD, USD/CHF, GBP/USD, and USD/JPY. ...
- For the moment, the most important examples for the category are: USD/JPY, EUR/USD, AUD/JPY, NZD/JPY, AUD/USD, and EUR/AUD. ...
- We can enumerate the pairs: USD/SEK, USD/ZAR, USD/TRI, NOK/USD, and BRL/USD or the Russian ruble.
Today I want to look at American session. During this particular session, the activity is most visible and allows traders to catch a lot of profitable opportunities during its time frame. Both activity and volatility presents plenty chances to make money.
American session is also filled with high liquidity and high trading activity, since almost 80% of all traders have dollar as a half of the preferred currency pair. The biggest currency movement occurs between 10:30 to 11:30 New York time.
During American session some of the biggest economic releases come out. Below are just some of it:
US Home Sales
Non-farm payroll (comes on on the 1st Friday of every month)
Knowing when the market is active or slow is important to every trader: short-term day trader builds his career around positions during volatile periods of the day, while long-term trader prefers to engage in trading during quiet hours.