The time when work is done in the financial markets is called a trading session. Compared to other financial markets, Forex does not have them, since work here takes place around the clock on weekdays. Trading stops on weekends.
Forex market hours.
Forex market hours are 24 hours a day, 5 days a week. Public holidays can be an exception. A special feature is the fact that there is no centralized trading venue. All market participants are located in different time zones. That is why there is a constant fluctuation of rates.
There are 4 temporary Forex trading sessions:
1. Pacific. The name speaks for itself. This is the quietest time to trade in the market. Small volumes of financial transactions make it very similar to the Asian one. Here, banks and stock exchanges in Australia and New Zealand are responsible for the level of activity.
2. Asian. It is characterized by moderate activity. Starts working 3 hours after the opening of the Wellington exchange. The session was opened by the city of Tokyo, which is the financial center of Asia.
3. European. It begins its work when Asians reduce their activity. Its financial capital is located in London, which takes over 30% of the total. The good geographical location allows the city to be a real guide between the East Atlantic and Western Europe.
4. American. It is this period that is rich in important news, events and fundamental data, which contributes to an increase in liquidity in the market. This is a period of increased trading activity in the market.
Each of the Forex trading sessions has its own characteristics that should be taken into account in your work. Each trader, starting a trade, should study them in order to maximize their profit indicators.
