It is also important to be careful or not trade near holidays and public holidays when price movements can become very erratic or too volatile for your chosen trading strategy.
Tokyo is the first market to open and many large participants use the trade momentum there to develop their strategies and as a gauge for future market dynamics.
London is the largest and most important trading center in the world, with about a 34% market share of the daily Forex volume. The second largest trading market, New York handles approximately 16% of the world’s Forex transactions.
International currency markets are made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail Forex brokers and investors around the world. Whereas the commodities and stock market operates five days a week (Monday through Friday) during normal business hours, the Forex market continues its activity around the clock. Approximately 6% of the world’s Forex transactions are enacted in the Tokyo Trading hours. Most of the world’s largest banks keep their dealing desks in London because of that market share. Because this market operates in multiple time zones, it can be accessed at almost any time. The large number of participants in the London Forex market and the high value of the transactions makes the London session more volatile than the other two sessions. If you would like to invest at 9:00 pm Thursday night when you have the time to concentrate on the market, simply place your trade on one of the many online Forex trading systems .
As a result, market developments in the afternoon during the New York session do not garner as much attention. However, even though the market is considered a 24-hour market, it’s important to know when the Forex market hours is actually active and when is the best time to place a trade on the market.
The New York session is heavily influenced by the US equity and bond markets and pairs will often move closely in tandem with these capital markets. These are the hours that are the most liquid or when the most traders are in the markets making trades.
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