Hello and welcome back to today’s post dear beginner trader.
I AM Daniel Ohuegbe.
In today’s post, I will talk to you about two important subjects that can help you to have a better trading career, which more often than not confuse beginner traders, and from experience, it can take over 5 years for them to figure it out, but that won’t be your case after today.
These two important subjects are forex trading times for beginners and what the most traded currency pairs in the world are.
So, let’s get started.
In forex market trading, trading sessions are certain time periods during which trading floors in different countries actively operate. The foreign exchange market is open 24 hours a day, five days a week, except for the national holidays.
Saturday and Sunday are days off, like in most banks.
Weekends are a time for unofficial forex markets, but trading during these days is highly risky because there are fewer participants in the market, which increases the possibility of short-term currency fluctuations since client orders are executed by one or several large banks located in another region.
This means that Forex markets are located in different geographical areas.
The beginning of one trading session always coincides with the end of another; that way, the market operates 24 hours a day.
There are four major trading sessions: American, European, Asian, and Pacific.
You Might Want To Ask Why Is It Important To Know Forex Trading Hours?
1. Knowing the trading hours, you can manage your own time more effectively.
2. Each session has its own specific features that can be used to increase your trading performance.
3. When forex sessions overlap, trading volume reaches its peak. And it is a period of the most active trading.
Characteristics Of Trading Sessions
The American session has the highest liquidity since it is the last trade of the day.
When traders of New York, the financial capital of the world, start to work at 13:00 (UTC), London traders return from their lunch breaks to continue trading. It is the time when the most influential fundamental news and the most important statistics are released.
The end of the European session brings volatility to the market. The American session is considered to be the most aggressive one, but its trading volume is much smaller than in the European trade.
What The Most Traded Currency Pairs In The World Are
To answer this as a trader, I will first list out the world’s most traded currency pairs according to the Bank of International Settlements (BIS) triennial survey, which was last taken in April 2019.
These are EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CNY, USD/CHF, USD/HKD, EUR/GBP, and USD/KRW.
Out of these the four major currency pairs were derived, which are EUR/USD, USD/JPY, GBP/USD, and USD/CHF, in my opinion.
For most people, they believe that the most actively traded pairs are EUR/USD, GBP/USD, USD/CAD, USD/CHF, and GBP/CAD.
The European session opens at 8:00 (UTC) when the Asian trade gradually comes to an end.
The financial center is London, as its working hours overlap with the other three major trading sessions. The London trading floor has the biggest trade turnover in the world.
The European session reaches its peak of activity within the first two or three hours. After that, the market slows down.
The most popular currency pairs are EUR/USD, GBP/USD, EUR/GBP, USD/CHF, GBP/CHF, and GBP/JPY. The Asian trade starts at 23:00 (UTC) in Tokyo, and then Singapore and Hong Kong join in.
By the end of the Asian session, the Bank of Japan enters the trading floor, which triggers a sharp increase in the volume of deals on currency pairs with the yen.
The trading activity is moderate; the most popular pairs are USD/JPY, GBP/JPY, and AUD/JPY.
The Pacific session, the slowest one, opens on Monday at 22:00 (UTC). A trading day starts in New Zealand and Australia.
The financial center of the Pacific trading is located in Wellington, but its trade turnover is very low.
Trading becomes more active when Sydney joins in.
Due to low trading activity, market participants often combine the Asian and the Pacific sessions.
The best time for forex trading is when the same currency pairs can be active or passive during different sessions.
Therefore, to gain profit from trading, it is necessary not only to understand the principles of foreign exchange market operation but also to know the work hours and even lunch breaks of dealers at a particular trading floor.
By being aware of the trading hours, you can determine the best trading period for the currency pairs you are interested in.
There you have the two subjects explained, my dear beginner trader.
In conclusion, thanks to our special recommended trading indicators for beginners and advanced traders available here on Cashforex Mentor, you can always choose one of the trading indicators to know forex trading hours based on the market volume and liquidity.
From my experience as a trader, having this extra knowledge and information will give you an edge that other beginner traders won’t have.
So, go ahead and get any one of these recommended trading indicators, install it, try it, and you will be notified of the beginning and end of each session trend signal.
However, these recommended trading indicators have been profitable for those who trade on the 1-hour – daily time frames, respectively.
Congratulations, as you plan and make every right effort to succeed as a financial market trader.
Based on its beginner friendly and profitable user experience as a trader, here is my recommended technical indicator for you as a beginner today (Band Single Indicator).
Also, to join other beginners in my recommended ongoing 14-day Career Freedom Opportunity, click here.
P.S.: If you have any questions regarding this post, kindly go ahead and comment in the comment section below or share this post with your financial market trader friends using the share button on this post page. Thank you!
I want to see you succeed in life and your financial market trading career.
Talk to you soon,
Daniel Ohuegbe,
14-Day Career Freedom Opportunity Founder And CashForex Trading System Creator!
14-Day Financial Market Success Mentor!
Dedicated To Redeeming Your Career And Financial Freedom!
