Forex trading sessions
The forex market is decentralized and has no specific location, and investors connect to this market through platforms and conduct their transactions.
Working in the international market (forex) requires training and increasing knowledge, because one of the characteristics of forex compared to other markets is its high risk, and therefore investors must improve their knowledge in order to gain profit and success.
Forex is one of the largest international financial markets, which stands for “Foreign Currency Exchange Market”. This market started its growing growth since 1998.
Today, it is possible to trade all kinds of stocks, stock exchanges, oil, digital currency, precious metals, etc. in Forex, but in the beginning only currency pairs were traded
The players of this market include insurance companies, central banks, financial institutions, export and import companies, etc., and these actors simultaneously buy one currency and sell another currency.
Below are some features of the forex market:
- The leverage factor and its use in the forex market are very exciting and attractive for investors.
- The amount of initial capital required in this market is very low compared to other markets.
- Price fluctuations in the forex market are greatly influenced by global events such as the country’s political and economic relations.
- Forex trading does not have a specific physical location and operates virtually and decentralized.
- There is a very high level of liquidity in the forex market.
- Technical and fundamental analysis is a solution to analyze the trend of increasing and decreasing the price of currency pairs.
- Trading in forex is twenty-four hours, and we are going to explain more about forex trading sessions.
Since forex is an international market, at any time of the day or night, the part of the world has the greatest influence on forex currency pairs.
Below we see three examples of the most important forex sessions:
- Tokyo trading session (Asian)
- London (European) trading session
- New York trading session (North American)
Forex is a 24-hour market and is open from Monday to Friday, in other words, it operates five days a week.
Those who think that because Forex is active 24 hours a day, so they can trade and profit at any moment of the day, they are completely wrong. A successful and professional trader knows in which forex sessions are more active and more dynamic, the probability of profit is higher.
Forex three-session system:
As mentioned above, there are three sessions in forex where trading volume is very high. Some prefer to identify these three sessions with the names of the continents, and others with the names of the cities, which of course do not differ from each other.
In the forex market, there are times when two important trading sessions are at the same time, for example, at a certain time, both the Tokyo session and the London session are active, and this interference is the best time for trading because the volume of forex activity is at its peak and the best Time counts for trading.