How does Forex work? Broker Squire's Finance Limited says

The Forex financial market is one of the largest in the world. The volume of daily trading is a couple of trillion dollars. Becoming a good trader is not easy. Analysts at Forex broker Squire's Finance Limited say you should avoid scams and master all the basic concepts well. You need to have certain skills. Plus to understand a number of very important nuances. In this article, created with the support of experts from the forex broker Squire's Finance Limited, you will learn about the exchange's working hours, trading sessions and many other extremely important aspects of its activities.

Forex schedule

The decentralized market is available 24/5 (from Sunday 20:00 to Friday 23:00 (UTC/GMT)). It is not available on international, national holidays. Weekend trading is also likely, but due to low activity, finding professional market makers is much more difficult. At the end of the article are tips from Squire's Finance Limited analysts on how to avoid a scam and how to trade successfully. Trading session, what is it? Forex Squire's Finance Limited tells us

The period of the day when active work begins in the foreign exchange market. According to Forex experts Squire's Finance Limited, the name of the sessions is determined by the financial center. Here are the ones that stand out:

• Sydney (pacific);
• London (European);
• Tokyo (Asian);
• New York (American).
   

One market plans to close, the other to open. The activity of the participants should be monitored. It increases at certain times. The duration of the sessions is 9 hours (the European one is an exception. It works 8). They replace each other, sometimes overlapping. The main office of Forex is in London. And all because it is located in a good time zone.

What is the difference between sessions? Forex Squire's Finance Limited can help you understand

To achieve success in trading is real. To do this, you need to understand many nuances and know the peculiarities of regional trading sessions. They are in different parts of the world, but they are still a single financial structure.

They differ in their bidding:
 

• volumes. European exchanges have the largest transactions (50%). Second place goes to the U.S. exchanges (30%). Pacific and Asian exchanges are on equal footing (10%);
• currency activity. In a certain period of time there may be activity a lot of currency pairs.
   

When building a strategy, this should be taken into account, because the criteria affect profit. Experts Forex Squire's Finance Limited notes two highs:
 

• the beginning of the London bidding and its coincidence with the end of the Tokyo bidding;
• the closing of the European session and its bridging with the New York session.
   

In the first case, players take into account the behavior of their European counterparts. In the second case, the reference point is the American one.

When to trade? Forex Squire's Finance Limited tells

The London session lasts eight hours (from 8:00 to 16:00 GMT). It partially coincides with the New York session. During this time, active trading begins. The level of liquidity reaches its highest level, plus you can see the highest volumes.

Squire's Finance Limited Broker Experts Many prefer quieter times (European start). Then trend and swing trading tactics can work very well. They are based on the possibility of using correction. This allows you to open deals at a better price.

Major big players choose the intersection of the London and New York sessions. During this period, a sharp change in the direction of the trend is recorded. Due to the volume of placed orders, market makers “push” the price to the spaces where stop losses accumulate. This leads to the fact that private players lose money.

Broker Squire's Finance Limited talks about the European session:
 

• 6.00 - 12.00 GMT - the most successful time for inexperienced investors;
• EUR/USD, GBP/USD are the best currency pairs.
   

Among the strategies worth using is the "London explosion". It is based on the fact that the European exchange begins to work after the Asian one, and their intersection provokes a burst of business activity. The essence of the strategy is to place pending orders. It will allow to catch the price impulse.

The Pacific session (starts at 22.00 GMT) has the smallest liquidity indicator. It does not exceed 4-5%. The peculiarity is that the most activity can be recorded in the first hours. The most traded pair is EUR/USD.

How can traders apply the forex schedule to their strategies?
 

It is better not to open deals right after the weekend. This is the time to assess the news background, make a weekly forecast, so chaotic movement of the value of investment products prevails on the exchange.

The experts of Squire's Finance Limited broker believe that the forex chart should be used to study the price movements of currency pairs. For this purpose, traders have technical, fundamental analysis, as well as other methods. It can help in determining the trading session. This is useful, because the player selects the best strategy depending on the situation on the Forex market.

A good example is i-Sessions. It works simply. Background rectangles of many colors display background sessions. The higher the level of volatility, the higher the rectangle. Its length is equal to the duration of a particular trading period. The only thing is that the indicator does not automatically switch to winter and summer time. It must be set manually. This should be done immediately after the clock is changed. The time difference between the terminal and the computer should also be taken into account. The i-Sessions has a graphically convenient display of the sessions. It does not close the chart of the currency pair, so the trader can fully focus on the trade.

You can also use the FXSSI. Trading Sessions indicator. Simple, clear, functional, free. Suitable for mt4/5 platform. It displays not only past and current periods, but also upcoming periods. The time zone is determined automatically here, there is a simplified mode for higher timeframes. The color scheme is pleasant, plus the balance of visibility and frequency of use. If you have any difficulties, you can always get training from Forex Squire's Finance Limited. It is structured, high quality and free. Plus, the broker has a mobile application and its own online terminal.