Trading Forex By Sessions

Now that you’re fully conversant with the meaning of forex, and why you need to participate in it, as well as the players who operate the market, the time has come for you to learn when to trade in the market.

We are talking about the different forex trading sessions, and we are going to teach you how to engage in forex trading sessions.

Of course, the forex market is always open for trade activities 24 hours of the day. However, that doesn’t imply that the market is always active throughout the whole day.

The market is one that moves up and down, and on each occasion, you can make a lot of money.

BUT, bear in mind that you will find it extremely challenging to make a dime when the market is stagnant and doesn’t move at all.

And you can place a bet on it; there will be times when the forex market will ultimately be still like dead men that tell no tales.

The lesson we are about to teach you will help you to know the best and most favourable times of the day to trade forex.

The Right Forex Market Hours

Before we start exploring the most conducive times to trade, let’s try to paint a picture of how the normal 24hrs-a-day entails in the forex world.

We can break down the forex market into four important trading sessions namely; the London Session, the Tokyo Session, and the New York Session, which is the favourite time to trade Pipcrawler. Below is a tabular representation of each sessions opening and closing times.

Spring & Summer in the United States (March/April to October & November)

Fall & Winter in the United States (October/November – March/April)

The actual opening and closing times depend on the hours operated by local businesses, with the majority of such business hours commencing between the local time of 7-9 AM.

The times of opening and closing will also vary during the periods of October/November, as well as in March/April, since countries like the U.S, Australia and England shift to and from Daylight Savings Time (DST).

Again, there is also a variance in the day of the month a particular country shift to and from DST, which further adds to the confusion. But thanks to Japan that doesn’t observe DST, which makes it simple for everyone.

At this time, you might be taking a look at the Sydney Open and probably wondering why on earth it has to shift two hours across the Eastern Time Zone.

You would have expected that Sydney’s open would move one hour ONLY when the U.S change to standard time.  But, you have to know that each time the US shift back by an hour, Sydney edges forward by ONE hour because seasons are directly opposite in Australia.

So let this one sink in if you have any plan to trade during such period.

Another thing you must take note of is that in the middle of each and any forex trading sessions, there is a window of time that allows two different sessions to open and operate at the same time.

For example, from 3: 00-4: 00 AM ET, summertime, the London Session and Tokyo Session overlap. The same goes for the New York Session and London Session as both overlaps in both summer and winter summer time, starting from 8: 00 AM – 12: 00 PM ET.

Usually, these times represent the busiest during the trading day, because the operation of two markets at the same time produces greater volume.

This is very sensible when you consider that during those times, every one of the participants in the market is actively ‘pushing’ and ‘dealing’, meaning large sums of cash are changing hands.

That said, let us look at the dominant currency pair and their average pip movement during each of the forex trading markets.

From the table above, you can see that on a standard scale, the most movement is provided by the London market.

Pay attention to how a number of the currency pairs have a broader range of pip movement compared to others.

Let’s take a more in-depth look at every one of the sessions, including the periods at which they overlap.                          

  • BrokerEUR/USD
    IG 0.6pips (fixed) margin: 3.33%
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