February 13, 2014
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Implement A Foreign Exchange Sydney Trading Schedule

This article looks at the most suitable times to trade foreign exchange Sydney.  It provides the most opportune times to trade.

Foreign Exchange Sydney Market Sessions

New traders often enter the foreign exchange Sydney trading market and the excitement of trading makes them trade like today is their last day on earth.  The 24-hour trading times makes this possible.  It is fine if you are showing suitable profits during your long hours of trading, but it is not physically or mentally possible to maintain long trading schedules.  You need a break from trading now and then simply to re-charge.  To prevent overtrading, you should devise a trading schedule.

Hours for Trading

The hours when the market is at its peak are the best hours to trade.  The market is generally busier when there are two trading sessions operating.  This causes more market movement in the currency prices.  When a single trading centre is operating, the currency pairs normally see tighter pip spreads of about 30.  When two centres are operating, this could increase to about 70 pips or above.  Impending releases of news announcements could cause the market volatility to increase.

The first step to a suitable trading schedule is to get to know the trading times for the different sessions.  The hours stipulated below are in GMT.

Asian Session Includes Foreign Exchange Sydney

The Asian session commences at 00:00 and it stops at 09:00.  The Tokyo market is the busiest during this session.  The most opportune currencies to trade during this time are the GBP/JPY, USD/JPY and GBP/CHF.  When this market is the only one that is open, it is best to trade the US dollar, Japanese yen.  This is due to the influence of the Bank of Japan on the trading market.

Session in Europe

This trading sessions starts at 08:00 and closes at 17:00.  The United Kingdom market dominates this session as London is the main trading centre.  London is viewed at the global trading capital as approximately 34% of all global trades occur during this time.  If you are a technical trader, this is an opportune time to trade as the trends are normally exposed during this period.

Session in the US

This trading session opens at 13:00 and it stops at 22:00.  This trading session is the most closely monitored time as the US dollar appears in almost 90% of all trades done in this market.  This session is the second largest globally.  All the movements during this trading period have an impact on the US dollar’s price.  Company mergers and major business acquisitions impact on the US dollar dramatically and will result on an impact on the forex trading market.

Overlap Periods

The overlap sessions are stated to be the most opportune times for trading.  You will find three overlap sessions in a normal trading day.

Tokyo/Sydney

This session overlap happens during 07:00 and 09:00.  This period is not as busy as the others, but you do have the opportunity to seek out higher values in pips.  The most opportune trading pair during this time is the EURJPY.

Tokyo/London

This overlap session is a short one.  It lasts for an hour from 08:00 to 09:00.  This overlap period is very slow.

London/New York

The London and New York trading sessions overlap between 13:00 and 17:00.  It is the most popular overlap and about 70% of all trades occur during this time period.  This is mainly due to the popularity of the currencies related to the sessions, namely the US dollar and the Euro.

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