How Forex Trading Works

Lesson No - 2

So friends, once again I am here with Basic Forex Trading Course with our Lesson No 2 How Forex Trading Works?

As we have discussed in our first lesson that forex markets are opened 24 hours and 5 days a week.  It remains open at 5 pm EST on Sunday till 4 pm EST on Friday.  There are four major session of forex market:

1. Sydney Session
2. Tokyo Session
3. London Session
4. New York Session

Forex Market opens at 5 pm EST with Sydney Session and after two hours at 7 pm EST Tokyo session overlaps Sydney Session, at about 8 am EST London Session starts and at about 1 pm EST New York Session starts and same circle runs 24 hours. 

Forex Market has a liquidity of about 5 Trillion Dollars so it is most volatile market and have alot of opportunities for the traders to earn good profits but earning profit is not as easy as some brokers advertise.

If you are going to start forex trading you must choose your hours according to above listed hours so that you can do trading as per your desire.  Mostly of the trading is done during London and New York sessions.  Mostly traders are interested to do trades during these two sessions.  Specially initial two hours of London Session and last 4 hours of London Session which are overlapped by 3 initial hours of New York Session have alot of trades.  However Sydney and Tokyo session also have good trading opportunities but London and New York session are favorite of traders.

Forex Markets mostly work on foreign currency pairs there are 8 major pairs and some minor pairs,  Except currency Forex Markets traders in metal and bitcoins also. Following are major pairs of forex markets:

Major Pairs:

1. EUR/USD
2. USD/JPY
3. GBP/USD
4. USD/CHF

Minor Pairs:

Followings are Minor Pairs of Currency:

1. EUR/AUD
2. GBP/JPY
3. GBP/CAD
4. NZD/JPY