The Forex Sessions

     Foreign exchange market has one very important benefit; it works 24 hours a day. This is an advantage in that people who invest in the foreign exchange sector to do their business even after business hours have ended. It does not matter whether it is in the middle of the night or it is very early in the morning. People who do foreign exchange business have no time limitations. However, times are not the same across the globe. That means that there are times when market for these liquid commodities is very volatile while at other times it is muted. It is also worth noting that different currency pairs fair differently and they also vary according to the demographics of the specific market applicants.

     Due to the differences in demographics and time zones, the forex market has been broken into three distinct forex sessions. This is an advantage to many forex traders because these forex sessions guarantee liquidity and traders have the opportunity to do their business during the times they want. The first forex session is the Asian Session in Tokyo, Japan. The Asian markets are the first ones to see action in any day. Though the Asian session is represented by Tokyo, it is not official representation. The Tokyo markets are live from 6.00 in the morning Greenwich Mean Time. Other countries that use this session include Australia, China, Russia and New Zealand. The Asian hours run between 11.00 PM up to 8.00 AM GMT.

     The second forex session is the European session based in London. This session starts later in the day compared to the Asian session. This session is very dense and has major financial markets. The trading starts from 7.30 in the morning up to 3.30 in the evening GMT. Some major countries in the European session include Germany and France.

     The third session is the North American session New York. This session starts long after the Asian session has been closed. However, by the time this session starts, the European session is halfway through. The countries that dominate this session include USA, Mexico, Canada and other countries in South America.