If you have been an ardent investor in the stock market field and kept yourself active, then you should know about Forex Sessions. The foreign exchange session is carried on in three continents, 24/7, from Monday to Friday.
From novice to expert, every stock investor is watching and monitoring the different stocks. By the end of each session, almost every stock or bond is liquefied, leaving a much more stagnant market as opposed to volatile.
This is when each session comes to an end and begins the next day again. When the liquefied assets are restored, trading starts again.
Now, the forex goes on 24/7. Which means you can start trading anytime you want. But, it is divided into three sections, and according to that, the stock market trading hours are decided.
– North American Trading Session (New York).
– Asian Trading Trading Session (Japan).
– European Trading Sessions (London).
Trading Hours Of This Forex Session
Here are the different trading hours or different from each other, depending on the financial market or the world companies you are targeting. When you see the hours, you will notice some overlapping.
A pro stock investor or a stockbroker who has been in the market for quite some time will be able to work through that volatility and make a profit. Afterall, many investors will advise you that there is a chance of profit when the market is going up and when it is going down.
It is the standstill that is tiresome because then the chance of profit is null. When trading seems like a rock, it is an indication that most assets have been liquefied, and it is time for the session to end. According to that, the following time zones are decided.
– Tokyo: 7 pm to 4 am. (GMT)
– London : 3am to 12pm. (GMT)
– Sydney: 5 pm to 2 am. (GMT)
– New York: 8 am to 5 pm. (GMT)
Key Factors You Should Know
Now, if you are interested in the Asian trading session, which is between 7 pm to 4 am, then here are the key takeaways you should be aware of. It is dominated by Tokyo since Japan is the financial hub mostly participating in this session.
1. Chances Of Low Volatility
Volatility generally comes when two trading sessions overlap. The activity increases with more investors buying stocks; however, if you see carefully, Tokyo overlaps with the New York session only for two hours.
Other than that, there is not much chance of volatility. This surely means less risk but also more periods of stagnation. The session is more active when it begins because it is the first one in the morning when every liquid asset has been restored.
2. Low Liquidity During This Session
For someone just starting with their stock trading, you will have more opportunities in the Asian session. One of the reasons for less liquidity is that these companies or investors do not trade in USD or Euros, which is common in other trading sessions. Most of the trading is carried out with Japanese Yen.
Prices also move at a thin range, and a good trader will take this opportunity to prepare for the next breakthrough.
Types Of Traders
Other countries who are also involved in this session are:
– Sydney.
– China.
– New Zealand.
– Malaysia.
– Russia.
– Singapore.
The major financial centers from where most of the trading happens are Hong Kong & Singapore. The charts of the Tokyo sessions become a yardstick for most of the other sessions which come right after this.
China is known for its economic superpower status in these trading sessions. So, any economic release from China can create volatility. So, one should always be prepared for such breakthroughs.