If you are wondering what the best forex trading hours are while living in Asia, then you probably should not ignore the article below. Perhaps after this article you will have 1 “ideal” time frame to be able to trade the best.
A great benefit of Forex trading is the ability to trade 24 hours a day and 5 days a week.
However, the trading days also include many trading sessions: European session, US session, Asian session, commonly known as London session, New York session, and Tokyo or Sydney session. That’s because there is no single forex market and different countries trade during different Forex trading hours. When the London market closed, traders in New York continued to trade. When the New York market closes, traders in Sydney start trading.
Forex trading sessions have their own characteristics
Each Forex trading session takes place in dynamic economies and has its own characteristics. No hour is the best Forex trading time.
When a country is open for trade, its currency and that of its trading partners will be traded more. For example, during the Asian session, Japanese companies will start buying and selling currencies to trade with companies from other countries. Therefore, the volume of transactions in local currencies and currencies exchanged by Japanese companies will increase.
When the European session opens, the volume of euro and pound will be higher due to European companies dealing with companies in other countries. At night, when the time for Forex trading has ended, the volume of euro transactions is much lower.
Therefore, no matter which session is open, the countries that are trading at the time will be related to the currencies being traded. That means that each Forex trading session will have its differences in performance as well as the amount of currency traded.
Forex trading hours
One thing is for sure, no trading sessions are open on Saturdays and Sundays. Trading begins in the Sydney session, opening the first of the week and ending when the New York session closes on the weekend. However, this depends on your location on the world map. If you are in Sydney, the trading week will start on Monday morning; If you are in the UK, you can trade on Sunday evenings.
The table below shows the world Forex trading hours in GMT. As you can see in the table, the trading day starts with the Asian session (Sydney) at 22:00 GMT and ends in the US session at the same time 22:00 GMT.
Because GMT never changes, you can use this Forex trading time table no matter where your location is located.
Features of each session:
1. Asian session
The Asian session begins at 22:00 GMT when the Sydney market opens. Because only Sydney trades at this time, the volume is quite small and the price change is small compared to other Forex trading hours.
At 00:00 GMT, the Tokyo market is open and volume increases. Because the Japanese market is smaller than the US and European markets, the volume of the major currency pairs is average, the liquidity of the market is also lower than the US and European sessions. During Asian Forex trading hours, the Japanese yen is the most traded because it is the local currency of Asia’s largest financial market. The most traded currency pairs are AUD / JPY, USD / JPY.
2. European session
At 8:00 GMT, the London market is open and the Tokyo market is trading in the last hours. At this time, a large number of traders participate in the transaction. This leads to bigger price movements as day traders in Tokyo exit orders and European traders are entering orders. In this session, all currency pairs are traded, the volume of major pairs is large and therefore the spread is also smaller.
Trading volume in the European session is 38% of the total trading volume, larger than the total volume of the US market (17%) and Japan market (6%) combined. This is a good appropriate Forex trading time as it ensures high market liquidity.
3. US session
At 13:00 GMT, the New York Session opens. For the time being, the London market is still open. With the participation of traders from both London and New York, the volume and liquidity of the market increased even more.
At 17:00 GMT, the London session ended and the New York session continued until the Asian Forex market opened. During this period, only the New York market opened, the volume was still higher than the Asian session but significantly decreased due to the exit of European traders.
All currency pairs are traded during the US session.
4. The sessions overlap
As you can see in the Forex trading time table above, overlapping sessions, for example London and Neww York, share the same trading time from 12:00 GMT to 17:00 GMT. During periods where the sessions overlap, a significant increase in the trading volume will affect market conditions: the higher the account, the more likely the order to be executed and the lower spread. This is a good time to trade.
EUR / USD price change hourly In the table above, you can see the range of EUR / USD change per hour over a 24-hour period. The red line represents the average change. During the period when Asian session overlaps European session and European session overlaps US session, trading activity is more exciting. You can also observe the highest and lowest positions that the red line represents. Price changes are likely to occur very quickly on both sides especially during the opening of a market. This is what you need to keep in mind when trading. One more thing is that during the start of the week and when the US session is about to end, the trading volume is very low so the spread is large, so this may not be the appropriate trading time. During the holidays, market conditions may vary, such as holidays of banks in the UK and US, because without the participation of these countries, The amount of vision will be lower than normal.
Another point to note is that it is news time. During these times, the impact it can have can be huge: prices can move very quickly in one direction and then reverse, etc. You can track the calendar for news and reports to avoid being surprised by the price movement.
Synthesized by top4forexbrokers.net