The foreign exchange market in New York is one of the most active in the world. The forex market is usually most active during the New York trading session, which overlaps with the London session.
Read on to learn how to trade these sessions well and which currency pairs are the best to trade during these sessions.
What is the trading session in New York?
This busy forex session starts at 8 a.m. New York time and ends at 7 p.m. New York Times. This session overlaps with London from 8:00 a.m. to 12:00 p.m. New York time, when the forex market is very liquid and busy. From 12:00 p.m. to 12:00 a.m. New York time, New York traders take over from their London counterparts.
Traders in New York who don’t do business with Tokyo usually send their books to their counterparts on the West Coast, in cities like Auckland or Wellington in New Zealand, or the Australian city of Sydney. During this time, US Dollars and Canadian Dollars are traded the most.
If the US session and the London session happen simultaneously, the New York session may trade the same way. There is usually more volatility in the first half of the New York trading session than in the second half. Traders can use different methods to trade on different levels of volatility.
What is trading?
Time is money, as the saying goes. So, timing is crucial in the forex market, which is open 24 hours a day. Timing is an essential part of trading. Of course, but when should we trade?
During the hot zone, the best time is from 13:00 GMT to 16:00 GMT. What kind of power do these hours have? Volume and volatility are at their highest during these hours! During this time, many people are trading on the market, currencies are moving quickly, and the most important economic news is coming out.
Volatility is how quickly the price of a currency pair changes, and volume is how many lots of one or more currency pairs are sold and bought.
Volatility and volume mix like gasoline during power hours. But in a good way! Also, they can cause significant changes in almost all pairs of currencies.
The best currency pairs to trade during the New York Trading Session
Focus on trading major currency pairs during the New York sessions, like EUR/USD, USD/JPY, GBP/USD, EUR/JPY, GBP/JPY, and USD/USD/USD CHF. These pairs will be the most liquid when the US and European sessions overlap.
Spreads will go down because of liquidity, which will lower trading costs. Because of this, most forex traders are likely to benefit from increased volatility and liquidity during the overlap period in the New York trading session.