One of the characteristics of the forex live market is the fact that you can trade 24 hours a day. When you trade on the forex market you will be able to trade when you want. However, you have to consider whether or not you should be trading all the time. There are a number of problems that come from trading at all times of the day. It is important that you know about the ways that you can overcome the limitations of the 24 hour market. There is a three session forex live system that you can use. You should know about this system and how you can use it to trade forex live.
The 24-Hour Trading System
Although this 24-hour trading market offers many advantages as it offers trade opportunities and liquidity throughout the day, there are drawbacks to the system. Traders are not always available to monitor their positions for extended periods of time. This may cause the trader to miss opportunities. If you find yourself in this position, you should ascertain the best time of day for your particular pair trading and strategy.
The forex market is divided into three main sessions when activity tends to peak. These are the North American, European and Asian sessions. These sessions are linked to New York, London and Tokyo respectively as these are the main financial centres in these regions. The trading markets are normally at its most active during these sessions which is when most of the bank and large corporations undertake daily transactions. It is also the time when most online speculators are trading.
The Asian Forex Live Session
This is the first market to open after the weekend break. Activity from these markets generally commences at midnight and continues through to 06h00 GMT which is representative of the Tokyo markets. Other countries that may affect this trading market include Australia, Russia, New Zealand and China. The scattering of the markets go beyond the Tokyo hours, allowing fair trading to the other markets. To make allowance for this, it is normal to consider the Asian trade hours to be between 23h00 and 08h00 GMT.
The European Session
The European session takes over just as the Asian session is coming to a close. This is an extremely dense time zone and includes several of the large financial markets. London generally defines the European session. The official trading hours in London normally run between 07h30 and 15h30 GMT. Due to the presence of the other markets such as France and Germany, trading hours are expanded. This makes the typical trading hours for the European session between 07h00 and 16h00 GMT.
The North American Session
At the time this session commences, the Asian markets have been shut for several hours. However, the European market still has half of its trading time available. This session is generally dominated by U.S. activity, with a bit from Canada and Mexico. It is also affected by some South American countries. There is therefore no surprise that this is the time when participation and volatility is at its highest.
Bearing in mind the trading times and the possible volatility and participation levels during certain times should allow you to device a most suitable forex system for your personal style and requirements.