Forex Market Structure
The Forex market is divided into major trading sessions: Sydney, Tokyo, London, and New York. Each session has distinct characteristics influenced by regional economic activities and liquidity.
Trading Hours
The market opens in Sydney at 10:00 PM GMT and sequentially transitions to Tokyo, London, and New York. Understanding these hours helps traders anticipate market movements and prepare accordingly.
Market Overlaps
Overlapping trading sessions, such as London-New York, often experience higher volatility and liquidity, presenting more trading opportunities for active traders.
Impact of Market Open
The opening of major markets can significantly affect currency volatility and trading volumes. Being aware of these impacts allows traders to make informed decisions.
Risk Management
While timing the market open can offer advantages, it’s crucial to implement risk management strategies to mitigate potential losses, as trading on Forex involves substantial risk of loss.
