In the pips school for begginers for the summer hours if you check it says the market is closed from 5pm EST to 6pm EST. meaning it says that no session is open during those times and im very confused. It is in the preschool topic 4.
For the benefit of other newbies who are reading this thread, here is the Table you referred to.
That table is telling you when most of the forex trading volume takes place in each major market. It’s not telling you that trading is impossible outside the “session times” shown.
Most of the foreign currency trading in each market occurs during the “normal business hours” in that market. So, in New York for example, most of each day’s trading occurs between 8 am and 5 pm. But, most does not mean all. Most means about 83%, by my calculation, which means that fully 17% of each day’s trading volume occurs sometime in the overnight hours between 5 pm and 8 am the next day.
So, the lost hour that you are concerned about – from 5 pm to 6 pm New York time – is a period of very low trading volume. But, it really isn’t accurate to say that the New York market – or any other market – is “closed” during that hour.
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@Clint what session would that be considered then? cause there is always a session going on if, not an overlap, from all other sources ive read. Just asking cause i want to be accurate in my note taking. I quess its more confusing too that it literally says open and close in that chart
Also, if my place in Pipsology didn’t give me away, I’m pretty new to forex and probably just notunderstanding the whole sessions thing
If you want to put a label on it, you can call it the Wellington, New Zealand, session. New Zealand is 2 hours ahead of Sydney, Australia, and (in northern hemisphere summer time) 16 hours ahead of New York. So, the normal business day has already begun in New Zealand, before the normal business day has ended in New York. That is, at 5 pm New York time, it’s 9 am in New Zealand (during our summer time, when we are on daylight saving time, and New Zealand is on standard time).
But, I want to encourage you not to fixate on these so-called opening and closing times.
It can be argued that there are only 3 primary trading sessions: London, New York, and Tokyo. Consider this: the interbank network is open and busy 24 hours per day, and that’s where the real action is in the foreign exchange market. When the business day is winding down in London, the big banks in that network transfer their open positions and open orders to their New York branches. And when the business day in New York winds down, those banks transfer their open positions and open orders to their Tokyo branches. And, finally, when the business day winds down in Tokyo, those banks transfer their open positions and orders back to London.
Lastly, I’m not sure that you’re ready for this, but I’m going to take a chance with it.
Here’s a different way of looking at trading sessions —
If you find this just adds to your confusion, simply ignore it for now. It will still be here, when you’re ready to have another look.
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