There are different trade sessions in the forex market, namely
- New York
All of these sessions are traded based on their geographical time location. As a result, they all trade at different times. This does not mean that traders cannot access the forex market or a commodity because a particular session is closed; it only means that the demand and supply of currency pairs associated with those trade sessions are not encouraging. The simple logic behind it is the fact that people go to work in the morning and come home in the evening to rest.
THE LONDON TRADE SESSION:
The London trade session is the most active trade session in the forex market. 30% of the trade that takes place in the forex market happens during this period. The demands are high, meaning high volatility, and as well high liquidity. With the London trade session being the busiest session there is, there is also the fact that it exposes traders to the highest risk level while trading (but forex is naturally risky, trade session irrespective). Traders, in most cases, prefer to start their forex career with the London trade session because that is where the action is.
FOREX CHART FOR GMT
GMT stands for Greenwich Mean Time, it is the London time. So the forex chart for GMT is a chart of trades that take place during the London trade session. A forex chart is a trading tool used to detect the activities in the forex market. When these activities are detected, one can tell when and when not to trade a currency pair. Forex chart for GMT in this case will be a chart representing the GBP (representing the London session that has the GMT), and the USD (representing the most trade currency in the market).
The GBP USD chart lets a trader see the history of a pair from whatever is going on in the present to ten years back. If you are monitoring your trade on a computer screen, one of the things you need to do is stay up to date about live charts. This will give you an idea of what is to happen in future if you know how to read your charts right. To understand a commodity better, it pays to go back in time to see how it performed under different market conditions, how they were traded, and what would have been the best trade decision for it if need be.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.