Trading Sessions

Trading Academy

Capitalco serves customers around the world as an introducing broker of FxPro with a global product line based on the most innovative online trading experience by offering superior trading environment and a wide range of educational materials

What is a Trading Session ?

A trading session is a period of time in the primary daytime trading hours of a financial instrument from market’s opening bell to its closing bell.

One of the interesting features of the foreign exchange market is that it is open 24 hours a day. Around-the-clock trading allows investors from across the globe to trade during normal business hours, after work, or even in the middle of the night.

Key Takeaways

✓ A trading session is the primary trading hours for a given financial instrument.
✓ The forex markets encompassing many overlapping sessions across different world time zones.
✓ The 24-hour forex trading session can be broken down into three manageable trading periods.
✓ Peak activity periods are the Asian, European, and North American sessions, which are also called Tokyo, London, and New York.

Understanding the 24 hour Forex Market

A 24-hour forex market offers a considerable advantage for many institutional and individual traders because it guarantees liquidity and the opportunity to trade at any conceivable time. The forex market is open 24 hours a day, five days per week, from Sunday evening until Friday night.

How a Trading Session Works

Traditionally, the market is separated into three peak activity sessions: the Asian, European, and North American sessions, which are also referred to as the Tokyo, London, and New York sessions. These names are used interchangeably, as the three cities represent the major financial centers for each of the regions. The markets are most active when these three powerhouses are conducting business, as most banks and corporations in the respective regions make their day-to-day transactions, and there is also a greater concentration of individual traders online.