🌍 Understanding Currency Pairs
💎 Major Pairs (80% of volume)
🥈 Minor Pairs (Cross Pairs)
🌟 Exotic Pairs
🌐 Global Trading Sessions
The forex market follows the sun around the globe. Understanding session overlaps is crucial for timing your trades.
🇦🇺 Sydney Session
Characteristics: Quietest session, lower volatility
Best Pairs: AUD/USD, NZD/USD, USD/JPY
Average Pip Range: 50-60 pips
🇯🇵 Tokyo Session
Characteristics: Moderate activity, trend-following
Best Pairs: USD/JPY, EUR/JPY, GBP/JPY
Average Pip Range: 60-70 pips
🇬🇧 London Session
Characteristics: Highest volume, strong trends
Best Pairs: EUR/USD, GBP/USD, USD/CHF
Average Pip Range: 80-100 pips
🇺🇸 New York Session
Characteristics: High volume, economic data releases
Best Pairs: EUR/USD, GBP/USD, USD/CAD
Average Pip Range: 70-90 pips
🔥 High-Activity Overlap Periods
💥 London-New York Overlap (8:00 AM - 12:00 PM ET)
Why it matters: This is typically the day's most liquid/busiest window (London + New York centers)
Best for: EUR/USD, GBP/USD breakouts and trends
Volatility: Highest of the day
🌅 Tokyo-London Overlap (3:00 AM - 4:00 AM ET)
Why it matters: European traders join Asian activity
Best for: EUR/JPY, GBP/JPY momentum trades
Volatility: Moderate increase
🎯 Forex Trading Tips for Beginners
1. 📊 Start with Major Pairs
EUR/USD and GBP/USD have the tightest spreads and most predictable behavior
2. ⏰ Trade During London-NY Overlap
8 AM - 12 PM ET offers the best liquidity and trend opportunities
3. 📰 Watch Economic Calendar
NFP, interest rate decisions, and GDP releases cause major volatility
4. 💰 Use Proper Position Sizing
Risk 1-2% per trade - forex leverage can be 50:1 or higher