You should know fairly quickly that forex markets provide a 24 hour day of trading. It does not mean that every hour of a 24 hour period is worth trading. There can be times when activity is so low that there is no point in trading. You make money when the market moves up or down; however, it is difficult to make money when the market is moving at a snail’s pace. The following on foreign exchange Sydney examines the most active times to invest in the market. You also want to keep in mind that daylight savings can change the timing slightly based on GMT standards.
Four Trading Sessions including Foreign Exchange Sydney
The information here is in GMT time to start. Eastern Standard Time will also be examined since the New York session is considered extremely important compared to all other markets including foreign exchange Sydney.
Sydney is open from 10pm to 7am, Tokyo 11pm to 8am, London 7am to 4pm, and New York 12pm to 9pm. If you notice, Sydney opens an hour after New York closes and Tokyo is two hours after New York closes. London is open for 4 hours during the New York session. For EST hours are 4pm to 1am, 6pm to 3am, 3am to 12pm, and 8am to 5pm, respectively. These hours are also for the winter period in which daylight savings plays a role in foreign exchange Sydney being two hours ahead of Tokyo rather than the one it was separated by during the summer months.
For those who live in a non USA time zone, you will want to check when these four trading sessions are open. Obviously if you live in Sydney your market is open when you are awake, but you still have a chance to catch the New York open or close depending on when you like to sleep or get up in the morning. You should also notice that markets overlap like Sydney and Tokyo, Tokyo and London, and London and New York. If you consider New Zealand as a fifth market, then New Zealand opens the minute New York closes and closes before New York opens again. New Zealand is the furthest east, but on the west side of the date line, thus it is the first country to see a new day. This is the only reason the market can matter in terms of the 24 hour trading cycle.
Foreign Exchange Sydney Pairing Averages
Taking a look at the EUR/USD as the most traded pair, volume and liquidity wise, you see during the Tokyo session it tends to move 76 pips, in London 114 pips and 92 pips in the New York session. In fact if you look at the London session you will see the major currency pairs often trade above 100 to 150 pips versus the New York session in which pairs are in the 70s to 130s.
Tokyo sees most pip changes around the 50s to 70s, with only a few over 100. For foreign exchange Sydney the best trading times are still the London-New York overlap given the pip changes that happen on average.