One of the significant advantages of trading foreign exchange is that it is open for business 24 hours a day, 5 days a week.
This provides many trading opportunities around the clock and can accommodate almost anyone’s work schedule or family and social commitments.
More precisely, trading activity may be broken down into four trading sessions:
- The Sydney session
- The Tokyo session
- The London session
- The New York session
Even though there is no exact schedule, we may assume the following GMT :
London trading activity may start in the morning at 8:00 and continue till noon, when the New York session begins. This overlap generates many potential opportunities, and price fluctuations may be wider and more prominent.
The London starts to fade out at 5 pm while the New York session continues till 10 at night.
Then, of course, New Zealand and Sydney wake up and take over along with the traders of the Tokyo session.
Even though the Sydney and the Tokyo sessions are more quiet, do not be surprised if the beginning of a new major trend begins here.
Sydney 10pm – 7am (GMT)
Tokyo midnight -9:00 am
London 8 am -4 pm
New York 1 pm – 10 pm
Now you understand why the forex market is global and open 24 hiurs around the clock.
Stay tuned for more!