An Overview of the New York FOREX Market
The New York FOREX trading session provides an opportunity for traders across the world to transact foreign currencies. At 8 am EST, traders in Europe are just getting back from their lunch breaks as traders in the US start to arrive in offices all around the country. This session, also known as the North American Hours, is the second most active market, with activity rivaling the first session in London.
For FOREX traders who value the liquidity that New York provides, there is much to be gained from the New York session. It is very active with most of the major currencies, such as the U.S. dollar, the euro, the British pound, the Japanese yen, and the Swiss franc, and the Canadian dollar being actively traded. With this high concentration of liquidity, traders have the potential to take advantage of various opportunities in different markets.
In the New York session, traders can actively move money through different currencies in order to take advantage of different market conditions. Through this process, traders can make profitable trades with their brokers by exploiting opportunities in the forex market. This can be especially beneficial in times of high volatility.
Why Trade During the New York Session?
For forex traders, there are numerous reasons to take part in the New York session. The primary reason is liquidity. During this session, the majority of major currencies are traded so there are ample opportunities to capture and capitalize on possible trades. Furthermore, traders can leverage their positions with help from the brokers, allowing them to maximize profits. This means that there is a significant advantage to trading during the New York session.
In addition to the benefits of the increased liquidity that is available during the session, this session offers other advantages such as gaining access to higher leverage and more favorable order execution. For example, leverage enables traders to use lower capital requirements while achieving larger returns than would be possible with an amount of capital that is large enough to encompass the entire risk.
Moreover, as a result of the large amounts of capital that move throughout this session, traders can achieve better order execution, i.e. orders which are filled as close as possible to the price which is desired by traders. Thus, they can know their intentions are more likely to be filled, giving them greater control over trades and profits.
COVID-19 Impact of the New York Session
Due to the unprecedented global shifts caused by the COVID-19 pandemic, the forex markets have altered their schemas and expectations. One of the most significant changes has been an increase in volatility. The markets have responded to greater uncertainty and risk-prone investments.
The New York session now sees a sizable increase in activity in response to the heightened volatility. Traders in the session need to exercise extreme caution as changes in the market situation could be imminent. To ensure success, traders need to ensure that they are making informed and calculated decisions.
Having multiple trading strategies at one’s disposal is highly beneficial as this allows traders to diversify their portfolios. It is this diversity in a portfolio, along with preparedness for sudden market movements, that can protect a trader from catastrophic losses.
Additionally, traders need to identify what type of market situation they wish to trade in and tighten their risk management strategies. By identifying areas that may be particularly risky or volatile, traders can assess what type of trades they should take and how the impacts from these trades could affect their portfolios.
Though analyzing the forex markets during this pandemic may be more uncertain than before, traders that do their due diligence and stay prepared can use the New York session to drive profitable trading. The Empira Forex News is a website dedicated to providing timely and accurate news about the currency markets. The site is updated daily, and offers a wide variety of analysis and commentary. The site is unique among other Forex news websites in that it also provides an in-depth review of various Forex brokers, helping traders make informed decisions before investing. All Forex news coverage is released in well-structured and easy to read charts and summaries, making it easy to find important information quickly. In addition, Empira Forex News also offers detailed technical analysis, backed up by a variety of charts and graphs. The charts are interactive, allowing traders to customize and sort according to various criteria. This helps traders get the most out of their research and make better investment decisions.