Trading session Forex (trading session).
They usually say that Forex trade is carried out 24 hours a day, with the exception of holidays and weekends. But besides this, there is also a division into trading sessions. The working hours of which will coincide with the working day on the main financial exchanges.
Trading session is a period of time during which the exchange platform operates and trading is conducted.
It doesn’t matter at all which exchange online trading , the conditions for making transactions do not change, only the dynamics of exchange rates and transaction volumes for some currency pairs may differ. Which in turn affects the size of the floating spread.
The Forex session lasts 9 working hours, while the trade is not interrupted for a minute, since the next time the session opens several hours earlier than the previous one closes. It is the simultaneous operation of the two trading platforms that is the hottest on Forex, since investors from several time zones participate in trading.
This fact is clearly visible in the schedule of trading sessions.
Asian-from 4-00 to 13-00
European-from 9-00 to 18-00,
American-from 16-00 to 01-00
Australian-from 00 to 9-00,
the demarcation according to this principle is associated with hourly belts and the operation of the financial system, this approach allows you to determine which of the foreign exchange pairs should be expected to exit news at a particular session. For example, if the euro is present in the currency pair, then most likely the important news in this currency will be released precisely at the European Trade Session, which will naturally cause the strengthening or turning of the trend. It also applies to other currencies and trading tools.
Any of the listed Forex sessions has its own character and is characterized by the dynamism of trade. The most aggressive is the American one, and the most calm trading takes place at the Australian sites.
Therefore, you can choose yourself when you should trade based on your preferences and capabilities. At the same time, you should not immediately give preference to the most popular currency pairs on Forex, try to experiment with both the time of trade and its instruments.
In more detail, this topic is disclosed in the article “ Trading Sessions of Forex ”.