A short test for you: when do TV ratings show the highest figures? If you answered prime time, you are perfectly right! How is it connected with trading sessions? Rating, which is compared to marketability, is the biggest when more people take part in the market activity.
Right when European traders are done with their lunch, the dealers from the USA start working early in the morning, right about 8 o’clock (EST). Compared with Europe and Asia, the U.S. session is linked to one monetary center, which is closely observed by all the marketplace.
The traders from Europe just begin their day when their Asian colleagues are getting closer to the finish line. Despite the fact that there are a couple of monetary centers around Europe, the market members watch London carefully, because it’s the most relevant one.
The initiation process of the Tokyo session at noon GMT leads to the conclusion that the Asian session begins. Actually, these two define the same stuff because Tokyo is the monetary capital in Asia. It’s significant to take into consideration that Japan is the third one in the trading process (meaning the size) worldwide.
As long as you are acquainted with forex, the reasons for trading, and the main participants, it’s time to get closer to the best periods of trading. You will get useful info on various trading sessions..