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Content George Soros Trading Strategy: How to Win?

The FX market is open 24 hours a day from Monday to Friday – as one part of the world goes to sleep, another wakes up. That’s why we talk about Forex market hours and Forex trading sessions – to describe where and when the different Forex trading sessions are open to trading. Since most Forex markets if not all are open from 9 to 5, forex time zone converter using a simple world clock can get the job done as well. Once you gain more experience as a Forex trader, you won’t even need a time zone converter. Forex major sessions are created with worlds major and big stock exchange open and closing time. The more traders…trading, the higher the trading volume, and the more active the market.

  • Most of the trading activity for a specific currency pair will occur when the trading sessions of the individual currencies overlap.
  • Find the approximate amount of currency units to buy or sell so you can control your maximum risk per position.
  • Session times also vary according to daylight savings times in the relative regions – so the Sydney, London and New York forex session times are impacted by daylight savings, whereas Tokyo is not.
  • Globally, forex session times are a general indication not hard fixed times – they are influenced by many factors, including when local business’ open and close.
  • A busy trading day with a significant number of forex traders opening and closing positions results in a high volume of deals, making it the most profitable time to invest in the market.

Find the approximate amount of currency units to buy or sell so you can control your maximum risk per position. Learn how to trade forex in a fun and easy-to-understand format.

George Soros Trading Strategy: How to Win?

For example, the NASDAQ and the New York Stock Exchange are located in, you guessed it right, in New York; The London Stock Exchange is located in London, and the Tokyo Shoken Torihikijo is based in Tokyo. Nonetheless, to trade a Forex pair, you need a counterparty. To buy something you need someone else to sell you want you are trying forex time zone converter to buy and vice versa. So, if you are trying to buy USD/JPY in the middle of the night when nobody in the United States or Japan are awake, then there is a good chance that you will have a hard time doing business. This is why in practice; you should spend your active trading hours when there are ample buyers and sellers in the market.

As we discussed earlier, when the market in New York opens, the London trading session has already progressed halfway for the day. As a result, the trading volume in the Forex market typically reaches the highest during the day at the opening hours of the New York trading session.

Forex Market Time Zone Converter

If the market’s sentiment is neutral, the price will stay about the same level. On the other hand, a bearish sentiment with high volume is like a snowball. The fast rate at which trades are made lowers the price quickly. So you will have second waves of traders that weren’t initially willing to sell, selling at even lower prices, which makes the price go even deeper.

forex time zone converter

Just because you can trade the market any time of the day or night doesn’t necessarily mean that you should. It does not follow that just because you have the ability to trade the market at any time of day or night that you should do so. Some of the most active market times will occur when two or more Market Centers are open at the same time. The Forex Market Time Converter will clearly indicate when two or more markets are open by displaying multiple green "Open" indicators in the Status column. Let’s take a look at three major Forex market hour-based strategies you can apply today to improve your win rate and increase profitability. Theoretically, it is true that there is no central exchange in the Forex market, and anyone can buy and sell currencies any time of the day or any day of the week. At the beginning of every session, it is more likely to get the movements that set the market sentiment during the day.

Tip 5. Trade at the beginning of the session

However, being a decentralized market, the Forex market has no rigid trading hours. For the most part, the forex trading sessions are named after major financial hubs and are generally based on the "work day" of dealers headquartered in those locations. The forex market is available for trading 24 hours a day, five and one-half days per week. The Forex Market Time Converter displays "Open" or "Closed" in the Status column to indicate the current state of each global Market Center. However, just because you can trade the market any time of the day or night doesn’t necessarily mean that you should. Most successful day traders understand that more trades are successful if conducted when market activity is high and that it is best to avoid times when trading is light.

European Markets

Volatility makes you profit, and volatility is a result of market volume. So as a trader, you can yield whether the price goes up or down, but it’s harder to make money if the price doesn’t move.

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Volatility is usually highest during times of maximum volume. The more active the market, the tighter the spreads you’ll get and the less slippage you’ll experience. You can make money trading when the market moves up, and you can even make money when the market moves down. But you will have a very difficult time trying to make money when the market doesn’t move at all.

Because during this time, two of the largest financial centers are operational, which increases liquidity in the market. High market liquidity is a pre-requisite of low spreads and short-term traders who only bag pips at a time need low spreads to reduce their cost of business.

If you are a Forex trader who applies breakout trading strategies, it makes perfect sense to look for breakout trades at the opening hours of the London market open. To do so, of course, you need to trade in smaller time frames like the 5-minute or the 15-minute charts.