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Besides being the biggest and most talked about financial market, forex has a very attractive characteristic: it works 24 hours a day. Being available and opening its doors to international participants at any time of the day is undoubtedly its best feature. Although forex never sleeps, here’s what you should know about exchange office hours.

Day Trading Forex: Seizing Opportunities In Mexico’s Market

Day Trading Forex: Seizing Opportunities In Mexico's Market

The foreign exchange market consists of banks, large organizations, asset management companies, hedge funds, retail brokers and investors around the world. Market hours provide them with a timetable that shows when they can and cannot perform currency operations.

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Technically, sessions are limited to business hours like typical stock market business hours, but given that there are multiple markets in the world; Forex can be entered at any time. When one session ends, another is already in full swing. Fits only for weekend breaks and holidays. However, as time zones move, weekends are squeezed ever tighter.

Forex adapts to many markets with working hours dictated by the opening of trades in different parts of the world.

Currency pairs are open for trading whenever you want, but no trader or investor can keep an eye on a market or position for hours. What’s more, not all market hours offer opportunities.

Certain currency pairs show different trends and activity as you move through the day. This is because market participants belong to different demographic groups and are engaged during different parts of the day. This concludes that the most profitable activity is closely related to certain market hours.

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For example, if a Forex trader is not aware of what to expect from a session, he could miss out on a profitable opportunity. Or the trader may not be at his computer when the spike in volatility occurs, allowing him to move against a set position (note that market volatility gives traders the opportunity to make or lose money). To reduce your risk, you can learn the most common volatility patterns and choose which time frame suits your personal trading needs.

You can learn the most common volatility patterns and choose which timeframe suits your trading style. Main Forex trading sessions

The main sessions and the most influential financial centers go together. During its working hours, the session bears the name of the corresponding city. Generally, forex is divided into sessions according to which are associated with peak traction.

Day Trading Forex: Seizing Opportunities In Mexico's Market

When the optimal liquidity position is established after the weekend break, the Asian trading session is conveniently the first to see the results of this. This is where the trading week actually begins. Tokyo’s financial markets unofficially set the trend for the region.

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However, this session is not limited to Tokyo and attracts movement from other places. Given that the Australian, Chinese and Russian markets are so geographically distant, there are good reasons for the opening and closing hours of the Asian market to be later than regular Tokyo hours. Smaller fluctuations are because Asian economies are highly dependent on the export of their goods, so they do not need strong fluctuations in national currencies.

Asian economies are highly dependent on the export of their goods and therefore do not need strong fluctuations in national currencies.

As the trading day progresses, shortly before the close of the Asian session, the European session enters the scene. This particular area is packed with multiple markets, so this area is particularly busy due to some of Europe’s leading financial markets. London takes the role of dictating the parameters for the European session, which accounts for 30% of all forex operations.

The European market is an interesting field because there are many influential platforms, such as France and Germany. They start working even before the official start in Great Britain. At the time of the opening, the euro rises in price, and a strong price movement is recorded on the market.

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Such a situation is ideal for achieving high profits, but this can only be achieved by experienced players who can monitor the fluctuations of many currencies and make a quick forecast of market trends. The session was extended to take advantage of the volatility created by the London market.

By the time the American market opens, the Asian session is already closed. However, the European participants only had half a working day. For the most part, the US session is naturally determined by what’s going on in the United States, with some influence coming from Canada, Mexico and a few other participants.

Not surprisingly, the active state of the New York market indicates intense volatility. If the announcement directly refers to the region, it always causes a strong reaction and a very sharp change in the exchange rate. This market is unusual because it creates large price changes in seconds.

Day Trading Forex: Seizing Opportunities In Mexico's Market

The start of the American session at 8:00 a.m. is an unofficial start prompted by the early work of the futures exchange, the commodity market and a noticeable influx of economic and political news. As a result of the difference between the market closing time in one part of the world and the new trading day in another, the liquidity gap occurs at 17:00 when the New York market closes.

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Early Monday morning, New Zealand enters the game with the market in Wellington, which technically marks the start of a new week.

Wellington is very calm and sees fairly little traffic. Because of this, it is not considered a very popular platform.

Another market in the Pacific area is Sydney. His activity is just starting to gain momentum this session as the real movement begins with the Tokyo session in two hours.

Exchanges in Hong Kong and Singapore open an hour after Tokyo, and movement is seen in pairs such as the Japanese yen, CNY, Hong Kong and Singapore dollars.

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20:00 – 20:30 is generally the off-peak period after the news, which lasts for several hours. Trading volume increases towards the end.

The amount of conversion operations in Frankfurt is significant. Operations are simultaneously carried out in London, Frankfurt and partly in New York, so it is excellent for carrying out large operations.

The exchange time of the International Monetary Market (IMM) – a division of the Chicago Mercantile Exchange, CME – is 07:20 a.m. and 02:00 p.m. Currency futures trading is largely done on the IMM, which has a strong impact on foreign exchange rates.

Day Trading Forex: Seizing Opportunities In Mexico's Market

The most volatile periods for performing FX operations are the busiest periods, such as the London and New York sessions. This implies large volumes of operations, so see if your currency pair is in high demand. This also means sharp price changes, but keeping up with changing trends requires some experience. This is common for the busiest sessions and their overlaps. Also, margins are narrowing, which leads to lower fees.

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The most volatile period is when the market is busiest, such as the London and New York sessions.

A widely accepted principle is that Tuesdays, Wednesdays and Thursdays attract the most activity. If you want to limit the working week, these three days would be the best choice.

Still, there are serious reasons to act cautiously. If a trader wants to make huge profits, he might be tempted to use leverage as high as 1000:1. While this ratio could potentially provide large gains, on the other hand, the trader risks losing equally large sums of money on a single trade.

For example, you could work with the EUR/USD currency pair. With the impact of busyness, overlapping sessions in New York and London could bring you the most profit. Similarly, depending on which pair you intend to work with, research when the peak activity is. Generally, it revolves around the local time zone for the national currency.

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As a trader, the first task is to decide whether periods of high volatility are compatible with your technique. If they are, you should learn your optimal trade time. It can be a specific session, an overlap or short periods after economic and political announcements.

Knowing the best working hours in the market does not mean that you have to grab every opportunity for a favorable move. An FX trader might be forced to wake up very early to keep up with everything. This could cause long-term burnout and frequent mistakes, so you need to take care of your health as well.

If you’re ready to participate in FX trading sessions and apply the lessons you’ve learned, do so through a platform, specifically our CFD trading platform. Start by creating a demo account and trading for the first time in a simulated environment, which is the best way to practice when exploring a new market.

Day Trading Forex: Seizing Opportunities In Mexico's Market

Disclaimer: The information in this article is not intended and does not constitute investment advice or any other form of advice or recommendation of any kind offered or endorsed by . Past performance does not guarantee future results. In engagements with

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