Understanding Forex Trading Hours and Their Impact in Mexico

Adapting to Forex trading hours and analyzing the effects they have in Mexico will help any trader capture more of the market. Forex is open through the whole day and five days a week but it doesn’t mean that every single hour of trading will show profit. The market is officially opened on Sunday evening and closed on Friday evening, (Mexico time) recognizing that there are overlapping trading sessions due to the operation of the financial markets of the world. Each of these sessions, Asia, Europe, as well as the U.S., possess special features that may impact your trading experience.

The very first trading session is the Asian session that starts Sunday evening in Mexico. These counted markets include Tokyo, Hong Kong, and Sydney in this session. A general observation during such times is that volume is lower compared to the later sessions and that implies less price action and wider spreads. To many traders in Mexico, this is known as the low volatility period because the market does not chop around as much as it does during the other periods and is perfect for traders who want/need tight price action.

The European session is up next and is commonly regarded as the most volatile period in Forex trading. This session comes with high liquidity especially due to London, Frankfurt, and Zurich among other financial centers thus small bid/ask changes or spreads. To a trader operating with a forex broker in Mexico, Europe is basically a chance for a trader to make more significant movements as traders from all over the globe make their way to respond to news, the regular market sentiment, and geopolitical changes. Another time of the day generating substantial volatility is the intersection of the EUR/US and Asia sessions.

Trading

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The U.S. session comes next, which begins in the late morning or early afternoon of Mexico time depending on the day of the week. As this session coincides with the European session for several hours, it forms an area of high volatility and turnover. It is the American currency therefore it is one of the most crossed currencies in the world and fluctuations arising from the release of US economic data are huge. This is a good time for the Mexican traders to trade the majors, particularly those involving the USD like the EUR/USD or the USD/JPY. The part of the European session and the start of the American session is called the “Golden period” which is considered the most favorable for trading.

For every trader planning to use a Forex broker in Mexico, it is advisable to copy trading hours with the trader’s timetable and tactics. Fortunately, high volatility and regularly observed value changes are achievable if you target the European and U.S. sessions. On the other hand, if a Forex trader prefers to have less volatility in the market then the Asian session may be a perfect place to be in.

When it comes to the dynamics of currency trading, it is essential to be familiar with Forex market hours to adjust your moves accordingly. This is a smart way of trading because it can take advantage of both better liquidity and higher volatility with a lesser risk because trading during slow periods results in wider spreads and less predictable price changes.

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Puneet

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Puneet is Tech blogger. He contributes to the Blogging, Gadgets, Social Media and Tech News section on KokTech.

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