When Can You Trade Forex: New York Session

When Can You Trade Forex: New York Session Lesson No 19

Okay, everyone, let’s look into the fascinating world of Forex during the US trading session. Picture this, European traders are winding up their lunch breaks, and the U.S. session begins at 8:00 a.m. EST, as traders begin their day at work.

Now, just as Asia and Europe have significant financial hubs, the United States has a superstar no other than New York City, the “City That Never Sleeps”! Approximately 17% of all forex transactions occur right here.

Some traders refer to the New York session as the “North American” trading session since, in addition to New York, important financial players in North America include Toronto and Chicago.

Let us break it down further. Ever wondered how much action takes place during the New York session? Well, we have you covered. Check out this table for the major currency pairs’ pip ranges during the New York session. It’s like a blueprint for understanding the currency industry at this exciting moment.

AD 4nXfrX1TcSLj2xfv3 ZJPFvk8x6V2kbLs6YZJew 4CPi6z9gais2U3V1izE 57DlSMuW4e8HeESua1jboj4QSIDxnz4 Jfb7umJnLzYViWV9J2lKAvMMyjsNPEBED5Bzl7Mmw16crjiqTxN0Z0XC71iIs zM?key=8OfLjMUoFZdWlzMakeLJQA

Now let’s talk about how to get through the New York session. First and foremost, the pip numbers we discussed previously are averages based on past data. Keep in mind that they are not set in stone and may alter depending on factors such as liquidity and market circumstances.

Now, the New York session can be divided into three halves.

  • Morning Session (8am – 12pm EST): This is where the most of the action takes place.
  • Lunch Session (12pm-1pm EST): A brief pause for lunch.
  • Afternoon Session (1pm – 4pm EST): Technically, it lasts until 5pm EST, but trading activity usually decreases after 4pm, when the US stock market closes. So, trading after that period is generally not recommended. Safety

Tips on Trading the New York Session

Now, let’s discuss some excellent trading advice for the New York session. Take a look at these,

Morning Boost: The best time to be active is in the morning.That’s when there is a high level of liquidity due to the overlap between the New York and European sessions. Meaning, increased possibilities.

Several Economic Reports: Get ready for financial reports! Early in the New York session, the majority of them drop. Pay close attention, particularly if it has to do with the US currency. The dollar is used in around 85% of trades, therefore significant releases of U.S. economic data have the potential to cause market swings.

Afternoon Chill: After European markets close, things settle down in the afternoon U.S. session. Less excitement means less crazy market swings.

Friday Vibes: It’s a little different. Asian traders are singing in karaoke bars, while Europeans are watching football in the club. How does this affect trading? Things are slowing down significantly. Movement is minimal.

But here’s a warning: keep an eye for unexpected changes throughout Friday’s second half. Why? Because US traders prefer to close early, they are taking precautions to avoid any unexpected news over the weekend. Safety always comes first.

Which Pairs Should You Trade?

Okay, here’s a game changer, when both the US and European markets open, expect an inflow of liquidity. It’s like a busy phone line, with banks and large corporations making moves.

You can trade practically any pair at this time. But, hey, stick to the main and minor ones, those unusual ones might be tough.

Because the US dollar is a major factor in most purchases. So, when U.S. data appears, everyone’s ears perk up. If the news is better or worse than predicted, prepare for a market rollercoaster, with the dollar doing its own thing.

Are you confused about when the sessions will begin? Do not fear, we’ve got you covered in the next part!