Start Your Trading on Forex Trading Platform at the Best Time

As forex is a 24-hour market, you can trade around the clock at any time you like. But this does not mean that every second is the best time for forex trading. Trading at the best time brings more possibility to profit, just like sowing in the right season for a better harvest. In order to see what time is best, firstly you have to know about the market sessions. The forex market can be broken up into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. 

 
Tokyo session is sometimes referred to as the Asian session, since Tokyo is the financial capital of Asia. The main market participants during the Tokyo session are commercial companies and central banks. The liquidity in this session is not that high, as a result most pairs may stick within a range. This provides opportunities for short day trades or potential breakout trades later in the day. As the early time zone of a day in the world, moves during the Tokyo session can give reference for traders in latter sessions to organize and evaluate their strategies.
When Asian market participants are starting to close shop, European traders are just beginning their day. London session is also referred as European session. As London session crosses with the two other major trading sessions and London is the financial center in the world, the liquidity in this session is low and transaction cost is lower. It is normally the most volatile session. However, volatility tends to die down in the middle of the session, since traders often go off to eat lunch before waiting for the New York trading period to begin. Sometimes there will be reversal at the end of the session, as European traders may decide to lock in profits.

New York session has a high liquidity in the morning, as it overlaps with the European session. There is the chance of reversals in the second half of the session, as U.S. traders close their positions ahead of the weekend, in order to limit exposure to any weekend news.

Therefore, to choose the best time to trade on your forex trading platform, first of all, you need be clear about what market session to trade in. As for the specific time, it’s best to choose the overlapping time between two sessions, during which there are high liquidity and huge trading volume.