Best Hour To Trade Forex

Best Hour To Trade Forex – In order to have a good understanding of forex market timing and changes in currency pair activity in the market, we recommend reading the beginning and end of the forex market timetable.

As the London and European trading sessions come to an end, the New York session has already begun; As the investor’s American, Asian and Australian markets move into turnover

Best Hour To Trade Forex

The working day in all financial sectors, whether in London, Tokyo or New York, is generally based on an 8-hour shift.

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Since forex is not traded on any particular exchange, a market participant residing in London has no legal, physical or regulatory restrictions preventing them from trading in the New York and Tokyo sessions.

This is especially beneficial for European forex traders who are interested in trading afternoon volatility generated by US data releases such as the Federal Open Market Committee (FOMC) major event and Non-Farm Payroll (NFP) data. .

In today’s computerized world, this is easy as trade management software automatically monitors currency positions, limits potential losses, sets profit targets and takes new positions.

Over the years, it has become a requirement and standard practice for banks worldwide and in all time zones to transmit executive trade orders.

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Thus, a cable trader sweating at the opening of GBPUSD can sell and buy orders to his counterpart in New York.

If the market does not break above these levels during New York trading hours, the order will be sent to Tokyo.

Thus, a forex trader could not work the standard and well-known hours of 9:00 a.m. to 5:00 p.m., but had to change his morning to exclude the Asian session.

The London Session is the largest market in terms of forex volume, accounting for 37% of the global trading volume.

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The London session not only dominates the Forex market in terms of global volume, but also experiences significantly greater price movements and daily ranges than its counterparts in New York and Tokyo.

The magnitude of the big price movements during this session has been a turning point for many trading strategies based on the London Open.

These strategies are designed to take advantage of the massive movement that follows the Asian session and London opening.

European and American banks have almost equal influence on the forex market, so the session is characterized by simple and predictable trading.

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During the Asian session, the most activity was seen on the Japanese Yen, Australian Dollar, USD, JPY, EUR, JPY, AUD and USD.

The first reaction to the result of the meeting can cause violent activity during the session and affect the price chart

Thus, FOREX currency trading (from the English foreign exchange market) has been around for a long time and its main purpose was not to keep speculative traders, but to keep products and services globally traded.

Forex became widely known a few decades after the Breton Code system changed from fixed exchange rates to a system of floating national currencies, when it became possible to exchange other currencies without a hard link to gold.

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As a result of these changes, central banks gained the ability to influence the composition of national currencies, thus influencing the financial situation of the country.

But it is important to understand that FOREX is not a stock market, but an over-the-counter currency trading market, a global protected specialized network in nodes that have small and large international banks. and various electronic trading systems (ECN).

These banks perform large foreign exchange operations on behalf of exporters and importers, investment institutions, insurance and pension funds, hedge funds and private investors.

And these so-called dealerships through which most traders sell are the same customers for a banking corporation as for any other company like IBM or Sony.

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These banks also operate at their own expense: at the same time, the daily turnover of the major banks is counted in the billions of dollars, and some banks also have a significant share of the profits generated by currency speculation.

In addition to banks, brokerage houses are active participants in the market, mediating between a large number of banks, funds, commission houses, dealership centers, etc.

Commercial banks and brokerage houses not only buy and sell at prices set by other active participants, but also offer their own prices.

In this way, they actively influence the price process and the life of the entire market, which is why they are called market makers

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Unlike active participants, passive market participants cannot set their own quotes and buy and sell currencies at prices offered by active market participants.

Passive market participants usually pursue the following goals: speculation on export-import contracts, foreign production investments, opening branches abroad or setting up joint ventures, tourism, exchange differences, currency hedging, etc.

Central banks go to forex, as a rule, not for profit, but to check the stability or correct the existing exchange rate of the national currency, because it has a significant impact on the country’s economy.

Although profit is not the main goal of these banks, profitable operations do not attract them either; Therefore, central bank interventions are usually disguised and carried out simultaneously through several commercial banks.

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This method of trading, usually through one of the so-called dealerships, allows small traders to participate in the foreign exchange market and still make profits or losses.

A dealership is a non-bank entity that conducts operations with currency traders on its own behalf and at its own expense.

Dealing centers receive quotes from information systems (quotes, Bloomberg, etc.), typically using several quote sources to form a consolidated stream.

The forex market has several key features that give it an inherent advantage over other financial markets such as stocks and bonds.

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Due to the large volume of the forex market and daily turnover, a lot of liquidity is generated

This is because any person or entity wishing to sell a currency must have a counterparty willing to purchase the same currency.

There are hundreds of online forex brokers in the world today, you can open an online trading account with any of them.

Daily press releases such as US non-farm payrolls data, minutes from Australian monetary policy meetings or German ZEW data will increase market volatility.

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With these major news events happening continuously and continuously every day or night, you can’t really leave your trading terminal.

Most stock markets provide leverage of 1:2 Forex brokers can offer leverage levels as high as 1:100 and in some cases as high as 1:500.

Unlike many agencies in other financial markets, you don’t have to pay as a percentage of your profits

With many online forex brokers, the trader sees all prices where the transaction cost is charged as a spread.

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In addition, many brokers take the bold step of ensuring that an investor’s negative open position does not exceed the value of the equity in the escrow account.

There are cases of relatively large movements of profiled Asian currencies with significant data outputs in Japan, Australia or New Zealand. This usually happens around 3 or 4 pm

There is a quiet trading period between 6am and 9am as the Asian forex sessions are winding down and European traders are just waking up.

During this time, it is recommended to watch the market closely and focus on the important statistics for the Eurozone, which will be published between 12:00-1:00.

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Usually from 13:00 to 14:00. Important statistics from the UK are coming out that could push the market in one direction

In most cases, traffic that started in the morning has survived until then, but there are exceptions due to statistical data in Europe or the UK.

The entry of large amounts of money into stocks in the US session could reverse any move that has been around since dawn and set up its own.

It is recommended to take into account their availability, their importance and the so-called the background of market sentiment and expectations for each day.

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