Trading session Forex (trading session).
It is usually said that Forex trading is carried out 24 hours a day, excluding holidays and weekends. But besides this, there is also a division into trading sessions. Opening hours, which will coincide with working hours 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.
A Forex session lasts 9 business hours, and trading is not interrupted for a minute, since the next session opens several hours earlier than the previous one closes.
It is the simultaneous operation of two trading platforms that is the hottest thing in Forex, since investors from several time zones participate in trading. This fact is clearly visible in the trading session schedule.
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 distinction on this principle is related to time zones and the operation of the financial system , this approach allows you to determine for which currency pair you should expect news releases at a particular session.
For example, if the euro is present in a currency pair, then most likely important news for this currency will be released during the European trading session, which will naturally cause a strengthening or reversal of the trend. The same applies to other currencies and trading instruments. Each of the listed Forex sessions has its own character and is characterized by dynamic trading.
The American one is considered the most aggressive, and the calmest trading takes place on Australian exchanges. Therefore, you can independently choose 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 experimenting with both trading time and its instruments. This topic is discussed in more detail in the article “ Forex Trading Sessions ”.