Partner code
vnd
for assistance

Forex trading session and what traders need to know

Q: What is the Forex trading session?

Forex trading session is a period when financial centers around the world are open for foreign exchange trading.

Forex trading session is an important concept that traders should understand when participating in the foreign exchange market. This affects price fluctuations, trading volume, profit opportunities, and trader risks. In this article, Learn Forex Trading will provide you with the necessary information about the trading session. How to time sessions according to UK time and how to utilize session time effectively.

Information traders need to know about Forex trading session

As a trader in the forex market, traders need to clearly understand the following information about the Forex trading session

What is the Forex trading session?

Forex trading session is a period when financial centers around the world are open for foreign exchange trading. The forex market is a continuous trading market. Trading takes place 24 hours from Monday to Friday.

Trading will depend on the operating hours of different financial centers. Therefore, the forex market is divided into different trading sessions. Depending on the geographical location of financial centers.

There are four main Forex trading session :

Australian session (Sydney): from 5:00 am to 2:00 pm GMT
Asian Session (Tokyo): from 12:00 a.m. to 9:00 a.m. GMT
European session (London): from 8:00 am to 5:00 pm GMT
American session (New York): from 1:00 pm to 10:00 pm GMT

Hours when Forex trading session are active

To know the operating hours of Forex trading session according to local time. Traders need to know about GMT (Greenwich Mean Time) and their time zone. The GMT zone is the international standard time zone, used as a reference for other time zones.

For example, if the trader is living in the UK, then the trader’s time zone is GMT+7. That is 7 hours faster than the GMT zone. Therefore, to time sessions according to UK time. Traders need to add 7 hours to the trading session hours in the GMT zone. The result is:

Australian session (Sydney): from 12:00 noon to 9:00 pm UK time
Asian session (Tokyo): from 7:00 am to 4:00 pm UK time
European session (London): from 3:00 pm to 12:00 pm UK time
American session (New York): from 8:00 pm to 5:00 am UK time
Hours of trading sessions

See more: Become a wise investor with ForexFactory

Forex sessions trade according to UK time

After knowing the hours of foreign exchange trading sessions according to UK time. Traders need to clearly understand the characteristics, advantages and disadvantages, and trading methods of each trading session.

Australian Session (Sydney)

The Australian (Sydney) session is the first session of the day. Starts from 12:00 noon to 9:00 pm UK time. This is the trading session with the lowest trading volume. Because there are only a handful of financial centers operating, mainly in Australia and New Zealand. Therefore, this session has slight price fluctuations, few profit opportunities, and low risks.

The main currency pairs traded during this session are currency pairs related to AUD (Australian Dollar) and NZD (New Zealand Dollar), such as AUD/USD, NZD/USD, AUD/JPY, NZD /JPY, AUD/NZD, NZD/JPY,…

Asian Session (Tokyo)

The Asian session (Tokyo) is the second session of the day. Starts from 7:00 am to 4:00 pm UK time. This is a trading session with higher trading volume than the Australian session. Because many financial centers are operating, mainly in Japan, China, Hong Kong, Singapore,…

The main currency pairs traded in this session are currency pairs related to JPY (Japanese Yen), such as USD/JPY, EUR/JPY, GBP/JPY, AUD/JPY, NZD/JPY, etc..

European Session (London)

The European session (London) is the third session of the day. Starts from 3:00 pm to 12:00 pm UK time. This is the trading session with the largest trading volume. The session had many financial centers operating, mainly in England, Germany, France, and Switzerland,…

The main currency pairs traded during this Forex trading session are currency pairs related to GBP (British Pound), such as GBP/USD, EUR/GBP, GBP/JPY, and GBP/CHF,. ..

American Session (New York)

The American session (New York) is the last session of the day. Starts from 8:00 pm to 5:00 am UK time. This is the trading session with the second-highest trading volume. The session had many financial centers operating, mainly in the US, Canada, and Mexico,…

The main currency pairs traded in this trading session are currency pairs related to the USD (US Dollar) such as EUR/USD, GBP/USD, USD/JPY, USD/CHF,… or spot gold price US Dollar XAUUSD investing.

How to make the most of your Forex trading session time effectively

To make effective use of session time. Traders need to note some of the following experiences:

Trading volume: Forex trading session with high trading volume will have strong price fluctuations, many profit opportunities, and high risks. Sessions with low trading volume will have slight price fluctuations, few profit opportunities, and low risk. Traders should choose sessions that suit their risk tolerance, patience level, and profit goals.

Crossover time: These are the times with the strongest price fluctuations, the most profit opportunities, and the highest risks. Traders should take advantage of these crossover periods to trade currency pairs related to those financial centers.
Economic news: Important economic news will affect the price fluctuations of currency pairs. Because they reflect the economic situation, monetary policy, and market expectations.

The best forex trading days

Outside of Forex trading session time. Traders should also pay attention to the forex trading days of the week. Not every day has the same price fluctuations, but depends on factors such as:

Starting and ending days of the week: Usually, Mondays and Fridays will have lower price fluctuations than other days. Because traders are preparing for the new week or closing weekend positions. Tuesday, Wednesday, and Thursday will have higher price fluctuations. Because traders are taking advantage of trading opportunities during the week.
Date of announcement of important economic news: Days with important economic news will have stronger price fluctuations than days without news. Traders should follow the publication schedule of economic news of countries related to the currency pairs they trade. Thereby choosing days with important economic news to trade.
Good forex trading days for traders

See more: Instructions for registering an XM account correctly

Trading experiences according to Forex trading session for traders

Self-study Forex will share with you some trading experiences according to the following Forex trading session for traders:

Determine your trading style and strategy: Traders should determine this to choose the appropriate session. A trader is someone who likes fast transactions, strong price fluctuations, opportunities to make profits, and accepts high risks. Then traders should trade during sessions with high trading volume and crossover time. On the contrary, traders should trade in sessions with low trading volume and no crossovers.
Choose the appropriate currency pair: Traders should choose the appropriate currency pair for the trading session they are trading. Thereby taking advantage of the price fluctuations of that currency pair.
Monitor economic news: Continuously monitor the economic news of countries related to the currency pairs you trade. From there, predict the price direction and prepare for big market moves.
Risk management: Traders should use reasonable stop loss and take profit orders, use low-leverage capital mangement, and not let emotions dominate,…
Experience in effective session trading

So the article on Learn Forex Trading has informed you about the Forex trading session. This is an important concept that traders should understand when participating in the foreign exchange market. Once you have a clear understanding of Forex trading session, traders will be able to enhance their trading abilities, optimize profits, and minimize risks.