Chasing Income Beyond the 9 to 5 Grind: Let's Understand the Forex Market Hours!
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Are you a full-time employee? If so, probably this picture is accurate to describe your current situation:
We got you! Going through the daily grind of a 9 to 5 gig is exhausting. The struggle is REAL, cutting costs here and there to pay rent and living the dreaded paycheck-to-paycheck life. Nights spent staring at the ceiling, contemplating the meaning of it all, while silently muttering, “When will this suffering ever end?”
The thought of finding an extra source of income, whether it’s a part-time gig or some other money-making scheme, has probably crossed your mind. Unfortunately, the enemy we’re up against is time itself. There’s simply not enough of it to squeeze in any additional demanding activities alongside your already demanding job. Because let’s face it, we may not possess the superhuman ability of Elon Musk, who can send people to Mars while running multiple companies simultaneously.
But what if we told you there is a way out of this misery and turned those sleepless nights into dreams of financial bliss?? NOPE, we are not going to tell you how to summon a genie and wish to be a billionaire overnight. This still needs practice and consistency. Yupp, one of the solutions is to dive into the world of forex trading. WHY? Because the forex market is awesome, it always has time for you whenever you need it. So what are you waiting for? Let’s explore the forex market hours further!
Let’s Understand the Forex Market Hours
Like your favorite pizza that’s there for you day and night, the forex market is always by your side! This is because the forex market is open 24 hours, 5 days a week.
When it comes to market hours, forex gains a definite edge over other instruments. Now, let’s take a closer look at how the forex market hours stack up against those of the stock market:
But hold up! Just because it’s open around the clock doesn’t mean every moment is a prime trading opportunity. There are times when the market is more active than others, and that’s when the magic happens. But why exactly do we need an active time to trade? Because if the market doesn’t move actively (has high volatility), it will be harder to find profitable trades. This is why you need to understand the three major trading sessions in forex. This is known as “the forex 3 session system”.
Forex Trading Sessions
- Tokyo Session: The Tokyo session kicks off the forex trading day, representing the Asian market. It starts around 11:00 PM GMT and continues until 8:00 AM GMT. This session is known for its active participation from Japanese institutional traders, with currency pairs involving the Japanese yen (JPY) often experiencing higher volatility during this time.
- London Session: The London session is considered the most liquid and active session in the forex market. It begins around 6:00 AM GMT and overlaps with the end of the Tokyo session. The London session continues until 3:00 PM GMT. As major financial institutions in Europe start their day, trading volumes and volatility tend to increase. This session often sets the tone for the overall market sentiment for the day.
- New York Session: The New York session takes over from the London session and is active from 12:00 PM GMT until 9:00 PM GMT. As the U.S. markets open and traders from Europe and America engage in forex trading simultaneously, this session experiences high liquidity and volatility. Major currency pairs involving the U.S. dollar (USD) are particularly influenced during this time.
Now that you are familiar with the forex market hours and the three major sessions, it’s time to delve deeper into each session. Check out the next articles to get a more in-depth look at each of the sessions!
Article Summary
- The forex market is open 24 hours a day, 5 days a week, providing flexibility for individuals with full-time jobs.
- Unlike the stock market, which operates for limited hours, the forex market offers continuous trading opportunities.
- The forex market has three major trading sessions: Tokyo Session, London Session, and New York Session.
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