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The most commonly traded currencies show a daily range of +100 pips. The foreign currency market is very volatile and very difficult to call. Most traders are looking to get as many of these pips as possible and thus the trade entry and exit prices are all important in forex trading. Market activity is all important for traders and the main 3 market sessions offer plenty of it for those who know when to trade

THE MARKET HOURS

FX-3market1

THE TOKYO SESSION: live from 12:00-6am gmt.The participants include China, Australia, New Zealand and Russia.

THE LONDON SESSION : live from 7:30-3:30pm gmt. Germany and France are important participants

USA SESSION GOES LIVE AT NOON GMT. Other participants include Canada, Mexico, and several South American countries.

Typically market activity is at its greatest when 2 sessions overlap. The peaks in activity usually occur at the close of the Tokyo session and opening of the London session, and later between noon to 4pm gmt when the USA and London sessions overlap. The greater number of traders and bankers during these peaks make them periods of much greater liquidity and volatility.

TIME WHEN NEWS IS RELEASED

NEWSRELEASE The best trading plans can go very wrong if one chooses the wrong session to open one’s trades. Notably European currencies will see more activity during the London session, and will the Yen during the Tokyo session. In addition news releases about fundamentals are usually realeased from 12-2pm gmt for the US, and around 9 am for the Uk market. This invariable lead to increased volatility and greater ranges are observed in currency prices during those times.