Within the depths of the Forex market, transaction volume and flakiness vary significantly across currency exchange combinations determined by the movement of the clock hands. What is that supposed to mean? The answer is straightforward: you can proceed with money deals more effectively if you get to know which currency is in the spotlight at any given timezone. That’s why daylight hours as well as the territory play first fiddle.
Since the money market operates around the clock, each broker can closely monitor the slightest change within the market and react to it promptly at any time. To develop a successful business outlook, it is advised to take into account the fluctuations in market activity for various currency pairs depending on different periods. This maneuver will allow you to maximize earning potential within your primary working hours without extra effort.
In addition, the liquidity of currency pairs varies depending on geographic location and macroeconomic factors. Being conscious of what time of day a currency pair has the widest and narrowest trading range will help you select the tool that is most suitable for your unique strategy.
It is worth keeping in mind that trading currency pairs with high volatility can add to your capital, but it is also vital to know that it has a high-risk policy. For instance, abrupt changes in the market often result in stop losses being triggered and financial risks being incurred.
What is particular about the Asian stock market?
The Asian stock market represents a considerable interest to investors. To be aware, this market is flooded with corporations and bankers from one of the most powerful economies in the world – China. In addition, traders flock like flies to honey to perform transactions with organizations from Singapore and Japan.
The main discrepancy between the campaign of Asian marketplaces and other regional stock markets is the timing of the session. Trading times are flexible, and you can follow them live.
It is interesting to know that the Asian session is considered the calmest trading opportunity, and most suitable for newbies to start their hand at trading within the international market. One would not expect any sharp leaps in quotes here.
What is the peak time for the Asian session?
On Monday, the opening of the Asian session occurs after a weekend break, as a result of which the session begins with trading on the gaps. It is at this moment that the market can close “gaps” or create new ones
On other days, activity during the Asian session is significantly lower. However, Asian traders usually set trends for the entire trading day, which are then supported by European and American players from all corners of the globe.
The leading participants during the Asian session are the Japanese Central Bank, as well as large corporations with world-famous names. The economies of Japan and China are export-oriented, which determines the high activity of their companies in transactions including foreign currency.
What are the perks and drawbacks of the Asian trading session?
First of all, the low spread on currency pairs and a narrow corridor of price movement allow you to scalp quite securely. All you need to do is select the most liquid assets. Quotes of shares, bonds, and stock indices are relatively stable and boast high liquidity. This means that there exist a lot of prominent trading tools within the Asian online market.
However, breakouts still happen: this situation can occur due to the news background or after a long consolidation. Breakout strategies should be used when other markets are actively moving, especially American ones since trading in the US closes right before the start of virtual trading in Asia. Plus, the volatility of most currency pairs is at the lowest, so to make more cash, you have to use leverage, which increases the risks several times.
How can the South African Forex market benefit from Asian session time?
For risk-tolerant traders around South Africa, USD/JPY, GBP/CHF, and GBP/JPY are suitable currency pairs to create mind-boggling deals. The large trading range for these currency pairs (over 80 pips on average) can open up breathtaking opportunities for short-term trades.
These days, South African traders have been actively looking for the diversification of their investment strategies. Under these circumstances, the brokers can benefit from asian session time in south africa which is well-known for flexibility and impressive liquidity. Moreover, Asian trading sessions can offer extended-hours trading and low-cost trading options. The representatives of South African markets should pay attention to two leading currencies which are the Japanese yen and the Australian dollar since they demonstrate the highest level of volatility at this time.
All in all, Asian session time is advantageous for South African traders aiming to expand their investment horizons beyond internal limits. With access to crucial financial exchanges in all corners of the world, including those in New York, London, Tokyo, and many others, Asian session time enables traders to engage with a multitude of asset classes across international borders. If you prefer a placid and clear trading style, Asian session time is designed for you.