It is a known fact that the Forex market is open 24 hours a day, every weekday. There are various Forex markets that overlap each other and create a 24 hour market. Each major market has its own operating hours. The Sydney session is the first market to open after weekends, but exactly what is the Sydney session? Let’s find out.
Sydney session definition
Sydney Session is the first of four major Forex markets to open after the weekend. The rest of the major markets are: Tokyo, London, and New York. Trading activity during the Sydney session is low, which causes high spreads and bad trading conditions. Sydney Session starts at 22:00 pm GMT/UTC and lasts till 7 am GMT/UTC (Summer time).
Why is the Sydney session important for traders?
- It is the first major Forex market to open.
- Due to different time zones, western traders are able to trade late on Sundays, thanks to the Sydney session.
- Traders who trade with JPY and AUD can benefit from this session as Tokyo and Sydney sessions overlap shortly after the Sydney’s open.
Thorough Sydney Session Explanation
Being the first major Forex market to open, there is no huge activity going on during this trading session. Sydney session is known for its low liquidity and low trading volumes, as most western traders are sleeping during these hours. Most professional traders avoid placing orders during the Sydney session.
Example of Sydney Session in Forex
The Sydney Session starts at 22:00 pm GMT. The Tokyo session follows 1 hour later. Some traders trade USD/JPY or AUD/USD pairs during these trading sessions. While others analyze trends that have been formed during London and New York sessions and use Sydney and Tokyo trading hours to position themselves for upcoming trends.
FAQs on Sydney Session in trading
What time is Sydney’s Session?
Sydney Session starts at 22:00 pm GMT/UTC and lasts till 7 am GMT/UTC (Summer time). Keep in mind that there’s one hour difference between winter and summer times.
Is Sydney Session good to trade?
No, Sydney session is known for high volatility and wide spreads. This makes trading during the Sydney session really unprofitable unless you are trading with a very specific strategy.
