Understanding the Forex market hours is a key requirement to implementing a profitable Forex trading strategy. The Foreign Exchange markets are often described as providing traders with the ability to trade around the clock as the global Foreign Exchange Markets are open for twenty four hours a day. While this does indeed provide the opportunity to trade at any time of the day or night it is important for traders to take account of the hours when they look to trade. This is especially important for new traders first starting out, as knowing the right time to trade is an important part of trading the markets successfully.
Although the Forex markets are open twenty four hours per day, they are in fact divided into a number of distinct sessions. There are three main sessions that you need to be aware of when trading which define the Forex market hours; the Tokyo session, the London session and the New York session. Each of these trading sessions is identified by a trading window which represents the time when the markets are open in each region. Understanding the market dynamics of each of these sessions can help to dictate the level of performance that you will achieve.
Each session has its own unique characteristics and dynamics that define the market action during the session. For example, regional currencies will tend to be most heavily traded during their local session. This leads to both higher liquidity and higher volatility in these currencies during these Forex market hours. Knowing this can help you to select the appropriate currency pairs and highest probability strategy to use. After all if you are ready to trade then you want to ensure that you are going to see sufficient profits generated on your trading position.
Of all the markets sessions, the London session is the most active and sees the highest volume of currency transactions made. Most European currency crosses tend to dominate the action at this time of the Forex market hours. It is probably no surpise to learn that many strategies have been developed in order to capitalise on these trading volumes at this time of day.
One particular way to profit from the start of a trading session is look for trends as soon as the market first opens. Trading ranges are often set over the previous session and a breakout from this range is what the London Forex Open Forex system seeks to capitalize on. Trading breakouts at this time of day offers a simple and lower risk way of implementing a successful traidng approach to take advantage fo the Forex market hours.
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