Forex Currency Pairs
A.Karim Yousfi is a experienced trader and analyst. He is managing a team of 5,000 traders at Audacity Capital London Trading Floor.
Forex, also known as the forex exchange market, is a decentralized market. It is available 24 hours daily, making it the most profitable trading platform. Traders can access different trading platforms at a time to transfer currency. However, it does not mean that one should be trading every time.
Timing is an essential factor to consider when trading forex since there are always the best and worst times to trade. First-time traders are always in the mood to trade throughout the period without considering the optimal times. Logically people who trade throughout are more likely to experience success.
The covid-19 impact on the forex market and other fundamental data points increased the USD value and other global currencies. Therefore, the need to trade raises thus the reason to be excited. However, traders should avoid short-term trading success like the plague. The best market sessions should be front and center of your trading calendar. Therefore, it is essential to narrow down your watch list and focus on the more profitable trading sessions.
This guide will help you identify the most profitable trading market and the importance of forex trading timings. It also highlights the essential factors to consider when organizing your trading calendar.
Several trading sessions exist in the trading market. However, there are four main trading sessions, which include:
The forex market is an over-the-counter platform since it functions without a centralized exchange. The forex market is a global web comprised of brokers, banks, and market makers. Forex trading is unique due to the element of timing. Forex market opens on Sunday at 1700 hrs EST and closes on Friday at 1700 hrs EST.
A heightened trading atmosphere occurs when two or more sessions clash. It makes the market more volatile, making currency pairs fluctuate. With volatile markets, there are increased risks, and Audacity Capital will help you succeed in your trading adventure.
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The New York session is the second largest trading platform globally. It opens from 8:00 am to 5:00 pm EST. The U.S. dollar contributes 90% of all trades, making this session the most popular among foreign investors.
Fluctuations in currency at the NYSE may have a direct or immediate impact on the dollar. The dollar’s value may drop or rise instantly during merging acquisitions or partnerships. Even though the market is open from morning to evening, the best times to trade start from 8:00 am EST to noon EST.
During this period, it overlaps with the London session. When these two sessions come together, they account for nearly half of all forex trades. The New York session is the longest trading session with high trading volumes. Traders always try to take advantage of the opportunity to make a profit outside the news announcements.
USD pairs experience the highest volumes during this session. They account for a massive chunk of all activities, which make up 44% of the total trading volume. Audacity Capital helps you take advantage of the fluctuations in the U.S. session.
The most profitable forex pairs include:
The London session is the leading trading session in the entire forex market. The forex trading time begins from 3:00 am to noon. According to the BIS report, the U.K. session contributes 43% of the total trading.
London plays a crucial role in controlling fluctuations due to Britain’s Bank of England, the central bank. This bank controls the policies around GBP and sets interest rates. Forex traders must stay ahead of the BOE’s changes as it affects the sterling pound and other pairs such as the EUR.
Professional traders need to understand that forex trends always originate from London. The need to use analyzing tools to identify opportunities using statistical trends and price movement. Some of the leading forex brokers in Britain provide technical traders with the right tools to identify when such opportunities arise.
The top traded pairing in the U.K. session is the GBP/USD, followed by the EUR/GBP pair. They are the most apparent pairs, especially during the overlap with the New York session.
The U.K. session has no obsolete best time to trade. However, the New York and London session overlap, providing a four-hour window period from 1300hours to 1700 hours EST. This period experiences the highest trading volume creating a good opportunity for traders to make profits.
The Tokyo session is the first Asian trading center to open, taking the largest trading volumes. It slightly takes the lead above the Singapore and Hong Kong sessions. The Tokyo session experiences a large crossover with the Sydney session, which runs for up to five hours. It begins at 1900hours to 0000 hours EST. The most popular currency during this session includes:
The best times to trade in the Tokyo session are from 1200 hrs to 1700 hours GMT. During this period, the market reached its highest volume since it overlaps with the New York and London sessions.
The Australian market comprises the Sydney session. The session opens every Monday at 0800 hours and closes at 1700 hours. The Sydney session is the smallest compared to the other three and accounts for plenty of actions on Sunday afternoon. During this period, traders and financial institutions begin to regroup after the break.
It is essential to seek assistance from some of the leading forex trading brokers to benefit from the Australian session.
Forex trading is unique because of the forex trade hours. Forex week begins on Sunday at 0500 hours and ends on Friday at 1700hours. However, not all hours are equal. Some hours provide more opportunities than others do. Therefore, it is essential to understand when the market is active before you trade.
When only a single market is open, currency pairs are likely to move by approximately 30 pips. The pairs can reach 70 pips when two or more markets are open. The best forex trading time can happen without your knowledge since you cannot access the computer. Therefore, installing a reliable forex trading app is vital to get the latest trading updates.
Understanding the best time for forex trading is essential. The market may be open for 24 hours, but only specific time does it experience high volumes. However, an increase in activity is limited to a specific currency pair.
Crossovers do affect different currency pairs. A good example is the GBO/USD and USD/EUR pair, which experience high volumes when the New York session starts. During this period, the London session is always at its peak.
Currency pairs are always at their peak when one or more associated markets are in session. Another factor to look at is the financial data around a particular pair. This information can help you decide whether you want to trade during a session.
Commitment and execution are the foundations that determine forex trading success. Timing also plays a crucial role in determining the success of any trade. It is more important than most people think.
First-time traders need to undergo training to help them understand forex trading. With Audacity Capital, one can access different resources from real experts allowing you to learn at your speed. It enables you to master the basics of every trading type, such as day trading.
The forex market is open 24 hours a day from Monday to Friday. However, traders can only make profits during certain times in the session. Each session has its peak period, which provides the best time to trade.
Overlaps provide the best time to trade. During this period, prices go higher, thus giving more opportunities.
Several trading markets exist around the globe. However, only four out of these sessions provide traders with more opportunities to make profits. These markets include:
English 
Italian 
Malay 
Indonesian 
French 
Spanish 
German 
Arabic