Short Term Forex Trading
Forex Traders must first decide what time of day and which
Forex market they intend to trade.
Currency markets are available as follows:
New York: open from 8:00am to 5:00 pm ET
Tokyo: open from 7:00 pm to 4:00am ET
Sydney: open from 5:00 pm to 2:00am ET
London: open from 3:00am to 12:00 noon ET
There are Forex trading hours when two sessions overlap:
New York and London Currency markets: 8:00am to 12:00 noon
Sydney / Tokyo Currency markets: 7:00 pm to 2:00 am ET
London / Tokyo Currency markets: 3:00am to 4:00am ET
London Forex Markets – Foreign Exchange
Forex Market Leader holding number one position for most Forex transactions.
Home of the Great Britain Pound (GBP) - Currently, London, England contributes
the greatest share of currency trading transactions with over 32% of the total
New York Forex Markets – Foreign Exchange
New York maintains second seat for total Forex market trading volume. The
Federal Reserve Bank of New York carries out foreign exchange-related activities
on behalf of the Federal Reserve System and the United States Treasury. In this
capacity, the Federal Reserve Bank of New York monitors and analyzes global
financial market developments, manages the United States foreign currency
reserves and from time to time, intervenes in the foreign exchange market. The
Federal Reserve Bank of New York also executes foreign exchange transactions on
behalf of customers.
Tokyo Forex Markets – Foreign Exchange
Tokyo Forex market maintains position number three as to total Forex trading
volume. The Asian session at 7:00 pm ET strikes the beginning of the forex
clock. The Tokyo session is also referred to as the Asian session since Tokyo is
the financial capital of Asia. Japan is the third largest forex trading center
in the world. The yen is the third most traded currency accounting for 16.50% of
all forex transactions. Nearly 21% of all forex transactions take place during
the Asian session.
Zurich Forex Markets #4 of total Forex trading volume.
Frankfurt Forex Markets #5 of total Forex trading volume.
Honk Kong Forex Markets #6 of total Forex trading volume.
Paris Forex Markets #7 of total Forex trading volume.
Sydney Forex Markets #8 of total Forex trading volume.
Forex Day Traders, investors and speculators - trade currencies directly in
order to benefit from movements in the currency exchange markets. Generally,
geopolitical activity will have a direct impact in the Forex markets – something
Forex traders monitor with caution. This same group of traders will try to
take advantage of short term currency market movements by playing the Forex
market both long and short. When dealing with a bull Forex market, currency
traders will buy a currency pair and sell it again in a short period of time –
to reap small profits, again and again. Bear market Forex traders will try to
take advantage of negative Forex market sentiment by short selling a currency
pair then, covering the position in a short period of time before the trend
begins to turn against them.
In recent weeks with the global financial unrest in Greece
– which is still going on – Forex traders were wagering heavily on
shorting the EUR/USD, and winning big. Forex traders have to be alert when
betting the bank to the downside – direction can change rapidly and, in the
blink of an eye. So whether you are a newbie Forex trader or a veteran, testing
the waters of Forex trading during other market sessions can be very lucrative.