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Markets overview

The Forex 3-Session System

Although the Forex market is open 24-hours a day, when looking for the best times to trade, you need to keep in mind that the forex market is broken up into 3 main, peak trading sessions. Namely, Asian, European and North American sessions, known as the Forex 3-Session System.

North American Session

12:00-21:00 GMT

European Session

7:00-16:00 GMT

Asian Session

23:00-8:00 GMT

Asian Session (or Tokyo)

This session starts at 23:00 GMT and closes at 8:00 GMT on the following day. For traders looking to trade Asian currency pairs, this is an important session. With the European and North American sessions being closed at this time, liquidity is lower. During the Asian session, commercial companies and central banks and the major market participants.

European Session (or London)

This session begins at 7:00 GMT and ends at 16:00 GMT. With the Asian session closing its last hour in the first of the European, this results in significant price movements. With the European session typically being the most volatile, traders need to pay attention to trends, as this is when they begin, through until the opening of the North American session. With London being at the forefront of the world’s financial scene, liquidity is extremely high during the European session.

North American Session (or New York)

This session opens at 12:00 GMT and closes at 21:00 GMT. The European and North American trading sessions share 4 hours, resulting in a significant increase in liquidity and volatility, thus why the majority of economic reports are released at the start of this session.