When to Trade Forex on the New York Forex Session

Do you want to know all about the New York forex session? Then you are on the right platform at the right time. We understand how important it is for forex traders to know about the New York forex session as almost 17% of forex transactions occur in New York. 

Forex markets worldwide

What is the greatest advantage forex markets offer? The answer is that they enable you to trade forex 24 hours a day, five days a week. That means you can trade non-stop from Sunday afternoon EST to Friday afternoon EST. So, forex markets are perfect for trading for hard-working traders who prefer to trade round the clock. 

Now the point is what creates this opportunity? It is the time zone that creates this wonderful opportunity. Time zone makes global forex markets open one after another. For example, forex markets in New Zealand, Australia, and Asia open first as the day begins in the far east. Europe and North America come later and therefore, markets also open later in those regions.

However, it is important to note that trading forex at all times isn’t good. Why so? Because there are some good times to trade and there are also some worst times to trade. As this article’s special focus is on the New York forex session, we shall explore only when to trade forex during the New York forex session. 

The New York forex session

The New York forex session opens and closes at 8:00 AM ET and 5:00 PM ET respectively. It overlaps with the London forex session as the London forex session opens and closes at 3:00 AM ET and 12:00 PM ET respectively. Why is it important to consider the overlap period?

It is important to consider the overlap period because it may affect your forex trading. For example, the overlap period is the most liquid period in the New York forex session. 

Trading tips for forex trading during the New York forex session

Kathy Lien states in his popular book titled “Day Trading the Currency Markets” that the trading on the New York forex platform involves the US dollar in almost 90% of trades. That makes it the second largest trading platform. Moreover, foreign investors also closely watch it because of heavy US dollar involvement. So, we can say that the New York Stock Exchange (NYSE) is a major force as far as the US dollar price is concerned. That said, it is important to trade very carefully during the New York forex session. Here are a few tips for you that’ll surely help you trade forex in a better way during the New York forex session. 

1. When the New York session overlaps with the London and European session, liquidity remains high. Therefore, devise your strategies accordingly. 

2. As the New York forex platform involves the US dollar in almost 90% of trades, the release of the US economic data can significantly affect the market. AND it is important to note that most big-time economic data is released at the start of the New York forex session. 

3. During the afternoon session, volatility is generally low as European and Asian forex markets get closed. So, make your trading strategies accordingly. 

4. As European and Asian markets get closed before the closure of the New York forex session, the Friday afternoon presents insignificant price movements. 

5. Finally, it is also important to remember that Friday afternoon may bring a reversal. Why so? Because the majority of the US traders might close their positions to avoid exposure to any weekend news or events. 

The best time to trade during the New York forex session

As we have already discussed, forex markets remain open 24 hours across the globe for 5 trading days. However, all trading hours aren’t equally good for trading. So, what are the best times to trade during the New York session? The answer is overlapping times. Overlapping times offer the best opportunities for forex traders to make money. As they offer maximum liquidity, the pip range generally remains high. Therefore, overlapping times are best for trading, theoretically at least. 

Additionally, the trading volume also remains high during the overlapping period. That also makes prices fluctuate and thus makes trading more beneficial. 

Best trading pairs for trading

High liquidity during the overlapping period makes virtually any pair good for trading. However, it is important to stick to major and minor pairs. It is better to avoid other pairs with greater risk. But the fact is, it all depends on your risk appetite and trading strategies.