TRADING SESSIONS AND FOREX TERMINOLOGIES BY @AMJOSH9

The foreign exchange market is market place where trading is done 24 hours round the clock, but what then is the use of trading sessions.

We are going to find out as we dive deeper into this post, we also going to be explaining some terms used in forex and by forex traders.

FOREX TRADING SESSIONS

Trading sessions exist in forex because they play a list of roles but above all, the reason trading sessions exist is a result of the liquidity and accessibility.

While it is available and accessible in different financial centers of the world the trading sessions represents time when financial centers are most active.

The overlap between two or more sessions is the best time to trade because of their higher liquidity, after giving you the list of sessions we have I will help you find which of them overlap the other and which time it does so.

They include;

SYDNEY SESSION

The Sydney session which involves the Australian and New Zealand market begins its trading by 10pm WAT(West African Time.) and closes by 7am WAT.

LONDON SESSION

The London session begins at 8am and ends at 5pm WAT(West African Time).

TOKYO SESSION

The Tokyo trading session begins at 12am and ends at 9am WAT(West African Time).

NEW YORK SESSION

The New York trading session begins at 2pm and ends at 11pm WAT (West African Time).

As I have mentioned earlier these sessions overlap each other and this has been known to be the best times to carryout a trade.

The Tokyo session and the London session overlap at 8am WAT and lasts for about an hour.

The London session also overlap with the New York session at 2pm(WAT) and lasts for about 3 hours.

IMPORTANT FOREX TERMINOLOGIES

Terms and vocabularies is a known and common part of most occupations and this terms help to shorten words and helps communication be more effective and understandable to only people who belong to the profession.

Forex trading is a profession also and here are some few important terms that are been used be the forex traders and their meanings.

TO GO LONG

To go long means to execute a buy order or to buy, so when you hear a forex trader say I'm going long on a trade or market it means his buying.

CURRENCY PAIRS

Currency pairs are currencies quoted or written in pairs and they appear in this format; USDNGN.
These currencies are traded together and in every of these currency pair take USDNGN for example the USD value represents one and NGN represents 1100 this how much of it is equal to a dollar.

TO GO SHORT

To go short is the opposite of to go long and this means to execute a sell order.

Bullish Market

Bullish market is a market that is going up or a rising market, this also gives rise to term bulls which means buyers.

BEARISH MARKET

Bearish market is a market that is going down, this also gives rise to term bears which means sellers.

TRENDING MARKET

Trending market is a market that is moving either up or down or one can say a market with a definite direction.

RANGING MARKET

Ranging market is a market without a definite direction, it goes up, down any how it feels like or you can say a market moving about a haphazardly motion very unpredictable.

MARGIN

Margin refers to one percent of the capital a trader is leveraged by a broker and uses for trading,the one percent is his own money while the rest is the broker's.

Margin serves as collateral a trader uses to open, hold and maintain a position.