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Preschool When Can You Trade Forex?

When Can You Trade Forex: New York Session

Right as European traders are getting back from their

Partner Center
lunch breaks, the U.S. session begins at 8:00 am EST as Find a Broker
traders start rolling into the office.

Just like Asia and Europe, the U.S. session has one major
financial center that the markets keep their eyes on.

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We’re talking of course, about the “City That Never

Sleeps!

New York City baby! The concrete jungle where dreams are made of!
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About 17% of all forex transactions happen in New York.

Some traders also refer to the New York session as the “North American”
trading session.

That’s because aside from New York, there are major financial centers
open in North America as well, such as Toronto and Chicago.

Below is a table of the New York session pip ranges of the major currency
pairs.

PAIR NEW YORK

EUR/USD 77

GBP/USD 68

USD/JPY 34

AUD/USD 68
 NZD/USD 62

USD/CAD 67

USD/CHF 56

EUR/JPY 72

GBP/JPY 77

AUD/JPY 71

EUR/GBP 50

EUR/CHF 46

These pip values were calculated using averages of past data. Take note
that these are NOT ABSOLUTE VALUES and can vary depending on
liquidity and other market conditions.

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The New York Session Split Into Three

The New York can actually be divided into three sessions:

1. Morning session: 8am – 12pm EST

 2. Lunch session (or lunch hour): 12pm – 1pm EST
3. Afternoon session: 1pm – 4pm EST

Most of the action happens during the morning session.

Technically, the New York afternoon session doesn’t really end until 5pm
EST, but trading activity typically dies when the U.S. stock market closes
which is 4pm so it’s not really safe to trade beyond that time.

Tips on Trading the New York Session

Here are some tips you should know about trading during the New
York session:

There is high liquidity during the morning, as it overlaps with the

European session.
Most economic reports are released near the start of the New York
session. Remember, about 85% of all trades involve the dollar, so
whenever big­time U.S. economic data is released, it has the potential
to move the markets.
Once European markets close shop, liquidity, and volatility tend to die
down during the afternoon U.S. session.
There is very little movement Friday afternoon, as Asian traders are out
singing in karaoke bars while European traders head off to the pub to
watch the soccer match.
Also on Fridays, there is the chance of reversals in the second half of
 the session, as U.S. traders close their positions ahead of the
weekend, in order to limit exposure to any weekend news.

Which Pairs Should You Trade?

Take note that there will be a TON of liquidity as both the U.S. and
European markets will be open at the same time.

You can bet that banks and multinational companies are burning up the
telephone wires.

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This allows you to trade virtually any pair, although it would be best if you
stuck to the major and minor pairs and avoid those weird ones.

Also, because the U.S. dollar is on the other side of the majority of
transactions, everybody will be paying attention to the U.S. data that is
released.

Should these reports come in better or worse than expected, it could

dramatically shake up the markets, as the dollar will be jumping up and
down.

Confused about which sessions start when? We made the next section just
for you!
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Next Lesson
Best Times of Day to Trade Forex
 It’s not about time, it’s about choices. How are you spending your choices?Beverly Abamo

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