FOREX TRADING SESSION

The forex market is open 24 hours a day, five days a week from Monday to Friday. This allows traders from all over the world-changing hands when buying or selling currency pairs.

First of all, you need to know that the forex trading session time is divided into several main sessions namely Asian Session, European Session, London Session, New York Session.

As we know, there is a huge time gap between Australia and America (about 16 hours). Therefore, it is not surprising that the trading market never sleeps because if one country’s market is closed, another market is being opened, and so on.

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There are 4 forex trading sessions:
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• Asian session
• European session
• London session
• New York Session

ASIAN, LONDON, NEW YORK SESSION

There are several currency market sessions traded around the world that affect currency movements within 24 hours a day.

The table above shows the market time chain opening from 6.00 am (Malaysian time) in the Asian market followed by the European market and finally is the New York market.

As soon as the New York market closes the session at 3.00 am, the Asian market reopens for the next day.

So, we can see how this forex is traded non-stop for 24 hours every day until the end of Friday.

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ASIAN SESSION
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The Asian market has 20% of the world’s total forex trading, Among the countries included in this session are the Tokyo Session and the Sydney Session. Transaction centers located in Tokyo (8%). Singapore (5%), Hong Kong (4%), and Australia (4%).

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The features of the Asian Market are:
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 Apart from Japan, countries with considerable economic strength such as (Hong Kong, Singapore, Australia, Korea) are also actively conducting transactions. China and Japan are among the major exporting countries. Commercial entrepreneurs (export/import) are also active in trading currency.

 At certain times there will be a situation where the market liquidity becomes thin. It is possible that the market will move slowly and will have to wait for a long time.

 Most price movements occur at the beginning of the session when there is a lot of economic news related to the fundamentals released.

 The Tokyo market to some extent affected the next session, as traders in Europe and America will look at what happened earlier in the Tokyo market before making a trading decision that day.

 The currency that may be attractive for you to trade in the Asian session is NZD, JPY, and AUD. In this regard, it should be noted that important news is not only released by New Zealand, Japan, and Australia. Keep in mind that China is a country with great economic strength. Therefore, if there is important news related to China, the movement of the three currencies will also be affected.

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EUROPEAN SESSION
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In Europe, especially London has been the world’s financial center since the era of the Industrial Revolution. The European market has taken the largest share about 36% of total trading in the global forex market. About 31% of trade is done in London while the remaining 5% is in Germany. Thus, the European market is the most popular time to trade.

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The features of the European market are:
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 The London session is a time of forex trading that takes place with a very large number of traders. This has resulted in very high market liquidity which causes the spread to become smaller.

 The range of price fluctuations becomes very high or fast.

 It is very often that the trends that occur in the European session will continue until the beginning of the New York session.

 During the day in the European session, market liquidity will decline as we wait for the American session to open.

 Some important news in the European Zone can influence price movements.

 In the European session, all currency pairs became very attractive to trade because there were many traders in the forex market. However, the most profitable movements are in the major pairs, namely, EUR / USD, GBP / USD, USD / JPY, and USD / CHF.

 Some cross pairs such as EUR / JPY and GBP / JPY also get attention because the movement is quite large and fast.

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AMERICAN SESSION
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New York is the center of trade and business in America. The city is also called “City that Never Sleeps”. Therefore, it is not surprising that the American session based in New York alone already covers about 19% of total trade global forex.

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The features of the New York market are:
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 There is high liquidity in the morning, as it overlaps with the European session.

 Most economic reports released near the start of the New York session. For information, about 85% of all trades involve the Dollar, so when large U.S. economic data is released, it has the potential to move the market.

 Once the European market closes, then market liquidity and volatility also tend to decline when the American session opens.

 There was a very slow movement on Friday afternoon as traders had already closed their trades.

 Traders are more cautious on weekends as they do not want to leave open positions at the end of Friday to avoid any news that may occur at that time.

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