Forex Trading Sessions

forex trading volatility

Forex Trading Sessions

Forex Trading Sessions – Now that you know what forex is, why you should trade it, and who makes up the fx market.

It’s time to learn about the different forex trading sessions by FxPremiere Group

It is true that the fx market is open 24 hours a day, but that doesn’t mean it’s always active the whole day.

You can make money trading when the market moves up, and you can even make money when the market moves down.

BUT you will have a very difficult time trying to make money when the market doesn’t move at all like during quiet time sessions. FxPremiere Group sends out 2 session signals. 9AM and 3PM GMT time – Forex Trading Sessions.

forex-trading-volatility Forex Trading Sessions

For beginners, you can use demo accounts to establish routines in identifying trade opportunities and to be able to place orders. Test them during volatile, quiet, trending, ranging, and volatile market conditions. To view our Forex Signal Results in a trading journal and identify which habits and processes work for you.

See our article that covers choosing a trading strategy for help.

Once you’ve found a process that works for you, get open a forex account and start taking small, live trades. Get comfortable with the emotional ups and downs of risking real money until you can execute your trading strategies consistently across different trading conditions.

You won’t know how well or badly you’re doing until you have evidence of your performance.

Forex Market Hours

Before looking at the best times to trade forex signals, look at what a 24-hour day in the fx world looks like.

The forex market can be broken up into four major trading sessions: the Sydney session, the Tokyo session, the London session, and Pipcrawler’s favorite time to trade, the New York session. Below are tables of the open and close times for each session:

Spring/Summer in the U.S. (March/April – October/November)

LOCAL TIMEEDTBST (GMT+1)
Sydney Open – 7:00 AMSydney Close  – 4:00 PM5:00 PM2:00 AM10:00 PM7:00 AM
Tokyo Open – 9:00  AMTokyo Close – 6:00 PM8:00 PM5:00 AM1:00 AM10:00 AM
London Open – 8:00 AMLondon Close – 4:00 PM3:00 AM11:00 AM8:00 AM4:00 PM
New York Open – 8:00 AMNew York Close – 5:00 PM8:00 AM5:00 PM1:00 PM10:00 PM

Fall/Winter in the U.S. (October/November – March/April)

LOCAL TIMEESTGMT
Sydney Open – 7:00 AMSydney Close  – 4:00 PM3:00 PM12:00 AM8:00 PM5:00 AM
Tokyo Open – 9:00  AMTokyo Close – 6:00 PM7:00 PM4:00 AM12:00 PM9:00 AM
London Open – 8:00 AMLondon Close – 4:00 PM3:00 AM11:00 AM8:00 AM4:00 PM
New York Open – 8:00 AMNew York Close – 5:00 PM8:00 AM5:00 PM1:00 PM10:00 PM

Actual open and close times are based on local hours, with most business hours starting somewhere between 7-9 AM local time. Open and close times will also vary during the months of October/November and March/April as some countries (like the United States, England and Australia) shift to/from daylight savings time (DST). The day of the month that a country shifts to/from DST also varies, confusing us even more.  And Japan doesn’t observe daylight savings, so thank you Japan for keeping it simple.

mt4-platform-2 Forex Trading Sessions

Now, you’re probably looking at the Sydney Open and wondering why it shifts two hours in the Eastern Timezone. You’d think that Sydney’s Open would only move one hour when the U.S. adjusts for standard time, but remember that when the U.S. shifts one hour back,

PAIRTOKYOLONDONNEW YORK
EUR/USD7611492
GBP/USD9212799
USD/JPY516659
AUD/USD778381
NZD/USD627270
USD/CAD579696
USD/CHF6710283
EUR/JPY102129107
GBP/JPY118151132
AUD/JPY98107103
EUR/GBP786147
EUR/CHF7910984

From the table, you will see that the London session normally provides the most movement.

Notice how some currency pairs have much larger pip movements than others.

forex-trading-volatility Forex Trading Sessions

Why We Are The Best Signal Provider – FxPremiere has been going strong since 2010

Forex Trading For Beginners

The foreign exchange market is one of the most well-known markets in today’s financial industry.

There are some things that everyone should know before entering this vast market. You can learn more about forex trading by reading this article.

Chapter 1 – Basics of Forex Trading

The Forex Market

The foreign exchange trading market, or more commonly known as FX or FOREX, is famous for being one of the most exciting markets that exists to this day and age.

It wasn’t until recently that forex trading in the currency market have been made up of only those belonging to large financial institutions, corporations, central banks, hedge funds.

Ever since the internet, the markets have begun to change immensely. FxPremiere Group Now, even the average investors are capable of buying and selling currencies easily with a mere click of a button through their own knowledge on how to trade forex.

In the forex market, the daily currency fluctuations are usually very small with most currency pairs moving less than once cent per day. This makes foreign exchange one of the least volatile existing financial markets.

See our Daily Forex Signals Provider

With this, many currency speculators depend on the availability of enormous leverage in order to increase the value of any potential movements.

The investors are presented with numerous opportunities once they enter the forex markets. But like with everything else, you still have to familiarize yourself with the basics behind currency movements in order for you to be successful in the field.

How to Trade Forex

Breaking down Forex Trading

Forex trading is one of the most popular types of trading there is in the financial field. Currencies hold a certain degree of importance to almost everyone in the world, whether they are aware of it or not. FxPremiere Group brings you the very best forex signals in the market.

Forex trading can already be seen in a person’s daily life. For instance, if you wish to buy a product from a foreign country you would normally go to a store near you in order to purchase or order it, right? But for that to be possible, the store would have needed to import the goods from that foreign country.

During this transaction, the money you used to buy the product, which is in your local currency, would need to be exchanged to the equivalent value of the foreign country’s local currency. This exchange could be between U.S. dollars (USD) and euros (EUR) or any other currency pairs found across the globe.

The market is also opened 24 hours a day, five days a week, almost every brokerage firm, offer their services during this time period.

You can easily conduct the trades in major financial centers of London, New York, Zurich, Paris, Tokyo, Singapore, Sydney, and Hong Kong – across almost every time zone.

With this, even if the trading day in the U.S. ends, the forex market in Tokyo or Hong Kong begins anew. You can then see that the forex market is active almost any time of the day with the constantly changing price quotes.

Forex Trading Styles and Strategies

There are several trading strategies you can use when it comes to forex trading. Some have been known to be more effective when compared to others.

You should research well about these various strategies in order to find out which one will fit you best. Here are some of the most popular strategies you can choose from:

  • Day Trading Strategy: Trades set using this strategy are normally exited before the day comes to an end. This can prevent you from taking damage from any negative events that can happen overnight.
  • Trend Trading Strategy: As a trend trader, you’re bound to follow the trend in order to determine the direction that the prices have been taking.
  • Swing Trading Strategy: This strategy is usually used for trades that last through the period of one day to one week.

There are also various trading styles that depend on the time frame and holding period of every trade. This includes intraday trading, position trading, swing trading, trend trading, technical trading, and fundamental trading.

Currency Pairs

What is a Currency Pair?

Basically, a currency pair is what you call the quotation and pricing structure of the currencies being traded in the fx market. The value of the currency is a rate and is determined by its comparison to another capital currency market.

Forex trades involve purchase of one currency and the sale of another at the same time. But when you look at a currency pair, you can easily think of it as a single unit, an instrument you can buy or sell.

An example of a currency pair is the euro (EUR) against the U.S. dollar (USD) or most commonly shown as EUR/USD, also known to be one of the widely traded currency pairs.

In this pairing, the first listed currency (USD) is referred to as the base currency, while the second currency (EUR) is referred to as the quote currency. The currency pair will indicate the amount of the quote currency you’ll need in order to purchase one unit of the base currency.

If you decide to buy a currency pair, you are buying the base currency and will be selling the quoted currency. Meanwhile, when you sell the currency pair, you will be selling the base currency and will be receiving the quote currency.

Types of Currency Pairs

Types of Currency Pairs

There are three types of currency pairs available across the globe; these are the major currency pairs, minor currency pairs, and the exotic currency pairs.

You should keep in mind that there are as many currency pairs as there are currencies in the world. The total number of existing currency pairs changes alongside the currencies that come and go.

Try Reading: Why Forex Trading is Ever-Growing in Popularity

Major Currency Pairs

All of the existing major currency pairs have the U.S. dollar (USD) on one side, either as the base currency or the quote currency. They are considered to be the most traded pairs in the foreign exchange market.

The major currency pairs also offer the lowest spread and are known to be the most liquid. Read our Forex trading Strategy guide.

The major currency pairs include:

Currency PairCountries
EUR/USDEuro Zone / United States
GBP/USDUnited Kingdom / United States
NZD/USDNew Zealand / United States
USD/JPYUnited States / Japan
USD/CADUnited States / Canada
AUD/USDAustralia / United States
USD/CHFUnited States / Switzerland

Minor Currency Pairs

The minor currency pairs are also commonly referred to as cross-currency pairs or simply “crosses”. These currency pairs do not contain the U.S. dollar. Minor currency pairs are known to have slightly wider spreads and are not as liquid as the majors but still sufficiently liquid markets.

In the past, in order to obtain the desired currency, you will first have to convert your currency into U.S. dollars and then into the other currency you wish to obtain.

With the introduction of the minor currency pairs, there is no longer any need to conduct such a long process. The most actively traded minor currency pairs include the three major non-U.S. dollar currencies which are the euro, the UK Pound, and the Japanese Yen.

The minor currency pairs include:

Currency PairCountries
EUR/GBPEuro Zone / United Kingdom
EUR/AUDEuro Zone / Australia
EUR/CADEuro Zone / Canada
EUR/CHFEuro Zone / Switzerland
EUR/NZDEuro Zone / New Zealand
EUR/JPYEuro Zone / Japan
CAD/JPYCanada / Japan
AUD/JPYAustralia / Japan
NZD/JPYNew Zealand / Japan
CHF/JPYSwitzerland  / Japan
GBP/JPYUnited Kingdom  / Japan
GBP/CADUnited Kingdom  / Canada
GBP/AUDUnited Kingdom  / Australia
GBP/CHFUnited Kingdom  / Switzerland
CAD/CHFCanada / Switzerland
AUD/CADAustralia / Canada
NZD/CHFNew Zealand / Switzerland

Exotic Currency Pairs

The exotic currency pairs are made up of those in the emerging markets. There is a huge difference in the liquidity of this type of currency pairs when compared to the other two. The spreads of exotic currency pairs are also much wider.

Exotic currency pairs are usually made up of one major currency and one currency of an emerging economy, such as Hong Kong, Singapore, or Mexico.

The exotic currency pairs include:

Currency PairCountries
USD/SGDUnited States / Singapore
USD/HKDUnited States / Hong Kong
USD/THBUnited States / Thailand
USD/SEKUnited States / Sweden
USD/DKKUnited States / Denmark
EUR/TRYEuro Zone / Turkey
JPY/NOKJapan / Norway
NZD/SGDNew Zealand / Singapore
AUD/MXNAustralia / Mexico
GBP/ZARUnited Kingdom / South Africa

Risks and Tips every Forex Trader Should Know

Risks Every Forex Trader Should Know

There are different types of risks that you should be aware of as a forex trader. Here are some of them.

  • Leverage Risk: Leverage can prove to be both beneficial and risky. The higher your leverage, the better your profits. Despite that, you should also keep in mind that your losses can also increase the higher your leverage gets.
  • Interest Rate Risk: The moment that a country’s interest rate rises, the currency will strengthen. The boost in strength can be attributed to an influx of investments in that country’s assets since with a stronger currency, higher returns can be more likely. But if the interest rate falls, the currency will weaken, which may result to more investors withdrawing their investments.
  • Transaction Risk: This risk is an exchange rate risk that can be associated with the time differences between the different countries. It can take place sometime between the beginning and end of a contract. There is a chance that during the 24-hours, exchange rates might change even before settling a trade. The currencies might be traded at different prices at different times during the trading hours. The transition risk increases the greater the time difference between entering and settling a contract.
  • Forex Signals Learning Guides.. Read more

Tips for Beginners in the Foreign Exchange Market

Here are some tips that everyone on the foreign exchange industry could use to help them succeed in the field.

  1. Learn as much as you can about the foreign exchange markets before you use your own money
  2. Don’t push aside the task of finding a reputable broker; it might as well be the make-it or break-it point of your trading journey.
  3. Never forget to use a practice account.
  4. Why traders choose FxPremiere Group
  5. Once you’re able to successfully create your trading account, protect it.
  6. Trading is not just another past time, you can treat it as a business.
  7. Open a MetaTrader 4 Account Today!

Trading currencies can cause some confusion related to risk due to its complexities. read more on Free vs Paid forex signals.

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