It is said that the foreign exchange market operates 24 hours a day, 5 days a week, but it is important for traders to understand the market flow and flow so that they can accurately understand the time of the transaction. While day traders rely on market volatility and liquidity, it applies to both day traders and trend traders, while trend traders must accurately close their entry times to get the most out of their transactions. Traders should also be aware of the economic events that are posted on the daily economic schedule to take advantage of the movements caused by published economic data.
Forex Market Hours by Region
Traders have found it difficult to understand because the Forex market time clock lives in different parts of the world, and also because market liquidity flows differently during different sessions of the market. Therefore, it is important to understand the foreign exchange market time based on a fixed time standard, so we will specify all times in GMT. Traders need to find out if they are ahead of GMT or how many hours. You should also keep in mind the daylight saving time in your area so that you can calculate the market time correctly. All of these factors make India's foreign exchange market time very different from South Africa's foreign exchange market time.
Since we have set the default time zone to GMT, we continue to understand the available forex market sessions. There are 4 market sessions depending on the timing, Sydney session, Tokyo session, London session and New York session. The market was democratic. Australia, Asia, Europe and America each distribute this session to the continent as one session. The Sydney session starts at 10pm (GMT) in the summer (April to October) while at 9pm (GMT) in the winter. The Tokyo session starts at 11pm (GMT) and closes at 8am (GMT) throughout the year. London sessions open at 7am (Greenwich Mean Time) and close at 4pm (GMT) in summer, New York sessions open at midday (MTMT) and close at 9pm (GMT) in summer (1 hour in winter) delay).
Regional opening and closing times
Sydney Open 10pm GMT (summer) / 9pm GMT (winter)
Sydney Close 7am GMT (summer) / 6am GMT (winter)
Tokyo Open 11:00 PM GMT (Summer) / 11:00 PM GMT (Winter)
Tokyo 8am GMT (summer) / 8am GMT (winter)
London Open 7am GMT (summer) / 8am GMT (winter)
London Close 4pm GMT (summer) / 5pm GMT (winter)
NY Open 12 PM GMT (Summer) / 1 PM GMT (Winter)
New York close 9pm GMT (summer) / 10pm GMT (winter)
Traders have to repeat the above timing again and again to fully understand everything. Since there are 4 sessions, I have a hard time understanding this and I need to convert it to a time zone and then adjust it to DST. It's not easy to understand, but as you start trading and try to keep in mind, it starts to get used to over time.
Best time for foreign exchange trading
So how do you use the Forex market time clock while trading? Liquidity and volatility vary from session to session. It's low during the Sydney session and is picked up when the Tokyo session begins and Japanese traders join Australian traders. Even if the Sydney session is closed, more pickups will be made during the London session. The world's leading banks and hedge funds have branches in the UK, participate in trades and increase market liquidity. Then the NY session brings much greater volatility and liquidity, which is when you look at the overall flow of the market.
For example, if you are in South Africa, just like South Africa, you should be able to understand your foreign exchange market time and plan your transactions accordingly. It's a good idea to avoid low-liquidity times because the price is very volatile or less volatile and as a trader you are not in a position to understand the movements occurring in the market. Because the market is shaking this way, the analysis you did, whether basic or technical, when liquidity is low is not useful. It's especially important to understand the weekend's forex market time, as the liquidity will be barely visible when traders return to their desks when the forex market session starts on Monday, but it's highly volatile because weekend news tends to influence various currencies.
As a trader, it is important to choose a time that stays at that time and is quite volatile and liquid. This is a London session or the best time to trade is the time the London session and the NY session overlap so you can get the best liquidity and volatility, and lead you in the right direction. The worst is the time between the end of the US session and the opening of the Sydney session, but of course there are some traders (very rare and failed varieties) that lack liquidity. deal.
High and low volatility on foreign exchange trading days
As mentioned earlier, market volatility is sliced according to the foreign exchange market time clock. It's a good idea to download the clock software with these timings built in so you can refer to it whenever you need. Again, you should convert your time zone to a time zone to avoid confusion. Volatility throughout the week is slightly higher during the first hour of trading a week, especially if you have important news on the weekend. Then, it is less volatile during the Sydney session compared to other sessions. When the Tokyo session begins, it is also a time when other countries in the same time zone, such as Singapore and China, are also participating in the transaction, so it is a time of high volatility in relation to the Asian time zone.
As major London banks and hedge funds and large European investors participate in the transaction, volatility increases and spreads again as the London session begins. Ideally, it's time for traders to start trading because there's a lot of noise-related transactions in previous sessions. Volatility continues to remain high for the next few hours and then peaks when the NY session begins. This is most volatile when both London and NY sessions are open and traders from major regions of the world compete in the market for about 3-4 hours. Then the London session ends, volatility slowly decreases and the lowest when the NY session closes.
Forex market time clocks should be kept in mind when trading by all traders. Again, it's hard to figure out because it varies from region to region, but once you get into it, it's much easier to handle and handle the flow.
Additionally, as some brokers post daily news and forecasts and provide support in times of their region, choosing a broker that fits your local or daily trading hours can improve your convenience.
There are 4 foreign exchange market sessions: Sydney session, Tokyo session, London session and NY session.
Each of these sessions has at least an hour of overlap with the next session.
Sydney sessions are the least volatile and unsuitable for the most volatile trading style.
The overlapping time between London and NY sessions is the time of greatest volatility on the market.
Traders should always try to wait for the Sydney and Tokyo sessions and start trading during the London session.
This week's FX market starts on Sunday from 9pm to 10pm and ends on Friday from 9pm to 10pm.
Traders need to know GMT's market timing, DST shifts and their own time zones in relation to GMT to fully understand their foreign exchange market time.
First of all, it is most important to understand the timing of London and NY sessions.
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