The forex market in a nutshell – USD 5.3 trillion daily transaction, USD 1 quadrillion valuation, and 2.5x larger than the global gross domestic product (GDP).
With its booming numbers come the increasing profitability for market participants.
For South African forex traders, finding the right time to execute trades can mean the difference between being profitable and unprofitable.
Fortunately, finding the best time to trade forex is not rocket science. Simply spot an active forex session, align your trading strategy to it, and hop into the fluctuations brought about by the volatility.
In this TRU Insight, you’ll walk through the implications of the New York trading session in the forex market and what you stand to get by trading this session. By the end of this insight, you’ll explore the best way to profit from the New York session time in South Africa.
What Time Is the New York Trading Session in South Africa?
| New York Trading Session Time | 16:00 to 24:00 |
Did you know that looking at the forex clock can mean the difference between being profitable and losing money?
Why – Simply because trading sessions are not made equally. Some are volatile, while most are not.
Fortunately, the New York trading session is considered the second largest and most active forex session.
By taking around 17% of daily forex transactions, this forex session brings the necessary volume for the market to be active, liquid, and volatile – the perfect recipe for a profitable market.
In South African Standard Time/SAST, the session begins at 15:00 (3:00 pm) and ends at midnight (12:00 am).
Want a pro tip?
The first four hours of the New York session are considered the most active and profitable forex window in a day. This is because the major financial hubs in the world – coming from North America and European regions – are operating simultaneously.
This ultimately bolsters increased foreign exchange transactions, making the market extremely liquid and moving it in an average range of 200 to 500 pips. This is especially true in the case of major currency pairs like EUR/USD, GBP/USD, USD/CAD, and USD/JPY.
When you trade during the New York session in South Africa, you must be familiar with the fundamentals revolving around the US economy, as these are the main market movers during this period.
Quick Overview: The 24-Hour Forex Operation
| Trading Session | South African Standard Time (SAST) | Coordinated Universal Time (UTC) |
|---|---|---|
| Sydney Session | 22:00 to 07:00 | 20:00 to 05:00 |
| Tokyo Session | 02:00 to 10:00 | 24:00 to 09:00 |
| London Session | 10:00 to 19:00 | 08:00 to 17:00 |
| New York Session | 16:00 to 24:00 | 13:00 to 22:00 |
Again, mastering the forex clock should be among the first skills developed to gain a broader perspective on the market.
One forex feature that attracts traders is its accessibility. As it operates around the clock during the weekdays, traders are presented with almost nonstop opportunities to speculate on and profit from the currency pair movement.
However, this appeal often causes harm to them. Just because the forex market is accessible almost anytime, they think it’s profitable to trade anytime they deem best.
They fail to consider that the underlying activeness of the market plays a pivotal role in their potential profitability.
Related Lesson: TradersUnited – The Best Time for Forex Trading : Guide to New York Session Time in South AfricaWhen the session has little to no volume, it entails an illiquid and non-volatile market – one that moves sideways and makes no pips. With this, trading an inactive market is extremely unproductive and often unprofitable as you spend more from opening a trade without any returns.
On the flip side, an active market makes the asset trade in an established trend. When the market is trending on a downward or upward, it yields you returns as it makes pips.
Pro Tip: Trade the London-New York Overlap for Profits
| London-New York Overlap | 15:00 to 19:00 |
The first four hours of the New York trading session are considered the most profitable session in forex.
This is because the major global financial centers operate during this period, boosting market volume and bringing a significant number of forex transactions that make the market trend.
Related: Beginner’s Guide: Trading London Session Time in South Africa : Guide to New York Session Time in South AfricaWhile it brings the volatility needed for profit, a trader should remain cautious during this period. Remember that volatility is only profitable when done right. If you make a wrong move in the market and it crashes against your position, you’ll see your investment go down the drain.
Should You Trade New York Session time in South Africa?
Yes, trading the New York session in South Africa presents beginner and expert traders, with an opportunity to better understand the dynamic forex market.
However, it carries significant volatility that could harm your trading account if approached incorrectly.
To ensure you’re trading the New York session properly, keep updated with the economic development within the North American borders.
As USD-denominated pairs mostly dominate the market during this period, staying informed with their movement helps you gauge and identify the potential movement of the overall forex market.
Another way to stay informed about the forex market is to join a verified online trading community. Doing so lets you connect with experienced traders whose insights can help you stop profitable opportunities about the current market development.
