When To Trade Forex Flashcards
What is a spread?
The difference in price between buying and selling the base currency
What is volatility?
When conditions in the market begin to change rapidly.
What is liquidity?
High liquidity = lots of market participants
(Best time to trade)
Low liquidity= Not many participants (Worst time to trade)
What is volume?
High volume= market participants doing large number of trade in certain pairs
Low Volume= Not many orders happening
What are the for main forex sessions
1: Sydney session
2: Tokyo session
3: London session
4: New York session
Sydney Session
1st session
Smallest and calmest
AUD/NZD pairs have the most movement
Australian and New Zealand market
Tokyo session
2nd season
3rd largest
JPY
SEE’s 6% Fores transactions
London session
3rd session
GBP,EUR,CHF
HISTORICALLY center of all world trade
34% of all fired transactions
Most active trading session( high liquidity, High volume, lower spreads, Major News Releases)
New York session
Last session
85% traces involving USD big moves
Major news releases occur around start of NY SESSION
USD/ CAD pairs move most
Volatility dies down after 12:00
When is the best time to trade?
The Overlaps
London New York overlap is most liquid
London Tokyo
Worst Time to Trade?
During new York session after 1:00 Pm
During the start of Sydney
Non Overlaps
Major Holidays
