Knowing the characteristics of the Forex market by paying attention to the opening hours, achieving optimal profit!
Forex is one of the foreign exchange exchanges that aims to get profit from the difference between the selling and buying prices. As a trader, you must be able to make good use of time to get optimal profit. It’s important to know the hours of forex trading that are in accordance with the style of trading.
At this opportunity, we will try to explain to you all about the characteristics and importance of paying attention to market opening hours.
Japan is a large exporting country and includes a trade center in Asia. The yen is an Asian currency and includes the strongest and most stable currency.
The first characteristic of the Tokyo market is that most of the movements will occur in early trade, where fundamental economic news will be released.
The Tokyo market will impact on markets that open next. This is what makes traders in Europe and America see what happened before in the Tokyo market. At certain times liquidity can be very small and this will be seen from low price movements.
Currency pairs that can be traded during the Asian session are JPY and AUD.
2. London’s Calling
Next there is the European market which is the most crowded forex session.When this session occurs, many entrepreneurs and traders make forex trading transactions.
Characteristics of the London market session are very high or volatile price movements. You also have to pay attention to important news that occurs in the Euro Zone, because the news in the zone will greatly affect price movements.
The London session has overlapping time with other market sessions. This is what makes the session in this market very crowded. This will result in high liquidity and smaller spread pips .
Entering the daytime volatility will decrease along with lunch time and wait for the United States session to open.
When the London session occurs it will make all currency pairs very attractive to trade. You can trade EUR / USD, GBP / USD, USD / JPY, and USD / CHF or other types of currencies.
3. New York
New York is one of the centers of trade and business in the United States. The interesting thing about New York is “City That Never Sleep” or the nickname for a city that is always active and never sleeps. Because USD is the world currency, it’s no wonder that almost 90% of trade will involve the United States Dollar.
The characteristics of the United States market are after the European market is closed, liquidity and volatility will decline. Economic news will drive market prices, this is because all trade will involve the United States Dollar.
On the morning of the day or in the beginning of trading, liquidity will be very high. This can happen due to overlapping with the European session. On Friday United States time, trade will start to drop dramatically. At that time, Asian and European traders have stopped their activities and started preparing for a weekend break.
Reversing the direction of the trend can often occur during the US afternoon session and some traders are not willing to leave open positions to avoid news that can happen on weekends.
When the American session is happening, all currency pairs will be very interesting to play. It’s just that you have to be careful and pay attention to news that can make the Dollar move wildly.
What Needs To Be Done To Achieve Optimal Profit?
You can get optimal profit by utilizing trading time during the European session.This is important because the European session is a busy and busy trading time.When overlapping occurs, then you can achieve profit in a short time.
For those of you who are aggressive traders, the Asian market is not very suitable due to low volatility and liquidity.
The most important thing is to always pay attention to important news and events while trading.
We hope the information above can provide benefits and inspiration!