Forex Concepts and Terminologies
TRADING DAY STRUCTURE
The forex market is open 24 hours a day beginning from 10pm (GMT +1) Sundaythrough 10pm (GMT+1) Friday. The market is divided into 4 sessions viz:
Asian Session
Few hours later, at around 7:00 P.M. Eastern U.S. time, midnight London time,
Japan awakens and the forex markets begin to stir. This is considered the
beginning of the Asian session. Japan is the third largest forex trading center,and comprises about 10 percent of all forex trading volume. Many of the
world’s major banks and
hedge funds have offices in Tokyo. Activity in the Japanese yen pairs begins to
surge at this time of day.
The European Session
As the Asian trading day winds down around 3:00 A.M. Eastern U.S. time,
European markets open for business, and the London trading day begins soon
afterward. This is considered to be the beginning of the European session.
The London Session
Great Britain is by far the most important forex trading market on
the planet, and London is considered the world’s capital of forex trading.
Roughly 30 percent of all foreign exchange volume comes from the trading
desks of London.
The U.S. Session
At around 8:00 A.M. New York time, about halfway through the London trading
session, U.S. forex traders come to life. This is considered to be the beginning
of the U.S. trading session. New York is the second most important market in
forex trading, and accounts for about 15 percent of the world’s total foreign
exchange volume.
Trading is especially active early in the U.S. session, as it overlaps the
European session. Now the two giants of forex, London and New York, are both
in play at the same time.
U.S. economic news releases occur in the early part of this session and can
cause a tremendous amount of volatility. Exchange rates swing wildly as the
market digests this new information.
Trading usually becomes aimless and choppy after midday in New
York as the London session winds down, and liquidity and volatility begin to
dissipate. By mid to late afternoon New York time, London traders have gone
home for the day, and it is late at night in Japan. New York traders, while still
active at this time of day, have already finished with the bulk of their trading.
Friday afternoons in the United States are generally the least active, because
for much of the trading world, it is already Friday night or Saturday.
The reduced liquidity often leads to “choppy” movements, because in an
illiquid environment, orders that normally would not have the power to move
exchange rates now can do exactly that.
Finally, as the U.S. markets close, a new trading day is just about to begin in
the western Pacific. The Australian and New Zealand markets begin to stir,
starting the process once again. The cycle continues all week, with most
trading desks closed from Friday afternoon until Sunday afternoon, Eastern U.S.
time.
and comprises about 10 percent of all forex trading volume. Many of the
world’s major banks and
hedge funds have offices in Tokyo. Activity in the Japanese yen pairs begins to
surge at this time of day.
The European Session
As the Asian trading day winds down around 3:00 A.M. Eastern U.S. time,
European markets open for business, and the London trading day begins soon
afterward. This is considered to be the beginning of the European session.
The London Session
Great Britain is by far the most important forex trading market on
the planet, and London is considered the world’s capital of forex trading.
Roughly 30 percent of all foreign exchange volume comes from the trading
desks of London.
The U.S. Session
At around 8:00 A.M. New York time, about halfway through the London trading
session, U.S. forex traders come to life. This is considered to be the beginning
of the U.S. trading session. New York is the second most important market in
forex trading, and accounts for about 15 percent of the world’s total foreign
exchange volume.
Trading is especially active early in the U.S. session, as it overlaps the
European session. Now the two giants of forex, London and New York, are both
in play at the same time.
U.S. economic news releases occur in the early part of this session and can
cause a tremendous amount of volatility. Exchange rates swing wildly as the
market digests this new information.
Trading usually becomes aimless and choppy after midday in New
York as the London session winds down, and liquidity and volatility begin to
dissipate. By mid to late afternoon New York time, London traders have gone
home for the day, and it is late at night in Japan. New York traders, while still
active at this time of day, have already finished with the bulk of their trading.
Friday afternoons in the United States are generally the least active, because
for much of the trading world, it is already Friday night or Saturday.
The reduced liquidity often leads to “choppy” movements, because in an
illiquid environment, orders that normally would not have the power to move
exchange rates now can do exactly that.
Finally, as the U.S. markets close, a new trading day is just about to begin in
the western Pacific. The Australian and New Zealand markets begin to stir,
starting the process once again. The cycle continues all week, with most
trading desks closed from Friday afternoon until Sunday afternoon, Eastern U.S.
time.
world’s major banks and
hedge funds have offices in Tokyo. Activity in the Japanese yen pairs begins to
surge at this time of day.
The European Session
As the Asian trading day winds down around 3:00 A.M. Eastern U.S. time,
European markets open for business, and the London trading day begins soon
afterward. This is considered to be the beginning of the European session.
The London Session
Great Britain is by far the most important forex trading market on
the planet, and London is considered the world’s capital of forex trading.
Roughly 30 percent of all foreign exchange volume comes from the trading
desks of London.
The U.S. Session
At around 8:00 A.M. New York time, about halfway through the London trading
session, U.S. forex traders come to life. This is considered to be the beginning
of the U.S. trading session. New York is the second most important market in
forex trading, and accounts for about 15 percent of the world’s total foreign
exchange volume.
Trading is especially active early in the U.S. session, as it overlaps the
European session. Now the two giants of forex, London and New York, are both
in play at the same time.
U.S. economic news releases occur in the early part of this session and can
cause a tremendous amount of volatility. Exchange rates swing wildly as the
market digests this new information.
Trading usually becomes aimless and choppy after midday in New
York as the London session winds down, and liquidity and volatility begin to
dissipate. By mid to late afternoon New York time, London traders have gone
home for the day, and it is late at night in Japan. New York traders, while still
active at this time of day, have already finished with the bulk of their trading.
Friday afternoons in the United States are generally the least active, because
for much of the trading world, it is already Friday night or Saturday.
The reduced liquidity often leads to “choppy” movements, because in an
illiquid environment, orders that normally would not have the power to move
exchange rates now can do exactly that.
Finally, as the U.S. markets close, a new trading day is just about to begin in
the western Pacific. The Australian and New Zealand markets begin to stir,
starting the process once again. The cycle continues all week, with most
trading desks closed from Friday afternoon until Sunday afternoon, Eastern U.S.
time.
and comprises about 10 percent of all forex trading volume. Many of the
world’s major banks and
hedge funds have offices in Tokyo. Activity in the Japanese yen pairs begins to
surge at this time of day.
The European Session
As the Asian trading day winds down around 3:00 A.M. Eastern U.S. time,
European markets open for business, and the London trading day begins soon
afterward. This is considered to be the beginning of the European session.
The London Session
Great Britain is by far the most important forex trading market on
the planet, and London is considered the world’s capital of forex trading.
Roughly 30 percent of all foreign exchange volume comes from the trading
desks of London.
The U.S. Session
At around 8:00 A.M. New York time, about halfway through the London trading
session, U.S. forex traders come to life. This is considered to be the beginning
of the U.S. trading session. New York is the second most important market in
forex trading, and accounts for about 15 percent of the world’s total foreign
exchange volume.
Trading is especially active early in the U.S. session, as it overlaps the
European session. Now the two giants of forex, London and New York, are both
in play at the same time.
U.S. economic news releases occur in the early part of this session and can
cause a tremendous amount of volatility. Exchange rates swing wildly as the
market digests this new information.
Trading usually becomes aimless and choppy after midday in New
York as the London session winds down, and liquidity and volatility begin to
dissipate. By mid to late afternoon New York time, London traders have gone
home for the day, and it is late at night in Japan. New York traders, while still
active at this time of day, have already finished with the bulk of their trading.
Friday afternoons in the United States are generally the least active, because
for much of the trading world, it is already Friday night or Saturday.
The reduced liquidity often leads to “choppy” movements, because in an
illiquid environment, orders that normally would not have the power to move
exchange rates now can do exactly that.
Finally, as the U.S. markets close, a new trading day is just about to begin in
the western Pacific. The Australian and New Zealand markets begin to stir,
starting the process once again. The cycle continues all week, with most
trading desks closed from Friday afternoon until Sunday afternoon, Eastern U.S.
time.
world’s major banks and
hedge funds have offices in Tokyo. Activity in the Japanese yen pairs begins to
surge at this time of day.
The European Session
As the Asian trading day winds down around 3:00 A.M. Eastern U.S. time,
European markets open for business, and the London trading day begins soon
afterward. This is considered to be the beginning of the European session.
The London Session
Great Britain is by far the most important forex trading market on
the planet, and London is considered the world’s capital of forex trading.
Roughly 30 percent of all foreign exchange volume comes from the trading
desks of London.
The U.S. Session
At around 8:00 A.M. New York time, about halfway through the London trading
session, U.S. forex traders come to life. This is considered to be the beginning
of the U.S. trading session. New York is the second most important market in
forex trading, and accounts for about 15 percent of the world’s total foreign
exchange volume.
Trading is especially active early in the U.S. session, as it overlaps the
European session. Now the two giants of forex, London and New York, are both
in play at the same time.
U.S. economic news releases occur in the early part of this session and can
cause a tremendous amount of volatility. Exchange rates swing wildly as the
market digests this new information.
Trading usually becomes aimless and choppy after midday in New
York as the London session winds down, and liquidity and volatility begin to
dissipate. By mid to late afternoon New York time, London traders have gone
home for the day, and it is late at night in Japan. New York traders, while still
active at this time of day, have already finished with the bulk of their trading.
Friday afternoons in the United States are generally the least active, because
for much of the trading world, it is already Friday night or Saturday.
The reduced liquidity often leads to “choppy” movements, because in an
illiquid environment, orders that normally would not have the power to move
exchange rates now can do exactly that.
Finally, as the U.S. markets close, a new trading day is just about to begin in
the western Pacific. The Australian and New Zealand markets begin to stir,
starting the process once again. The cycle continues all week, with most
trading desks closed from Friday afternoon until Sunday afternoon, Eastern U.S.
time.
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