Asian Session
What Is an Asian Session in CFDs Trading?
The Asian session is one of the largest trading sessions in the CFDs market. It combines activity from both the Sydney and Tokyo sessions, marking the official beginning of the global 24-hour CFDs trading day.
For CFDs traders, especially those focused on Forex pairs like USDJPY, AUDUSD, or NZDJPY, understanding the Asian session is important. It sets the early tone for the markets before the higher volatility of the London and New York sessions kicks in.
What Time Is the Asian Session?
The Asian trading session runs approximately from 2:00 AM to 11:00 AM (GMT+3). This aligns with the Tokyo market’s operating hours but also includes activity from Sydney and Singapore.
Traders following the Asian session in GMT+3 can use this window to track early price movements or news impacting Asian currency pairs, as well as regional commodities like gold or oil influenced by China or Australia.
What Happens During the Asian Trading Session?
During the Asian session, CFDs traders typically observe:
- Lower volatility: Compared to the London Session and the New York Session, price movements are more stable. This suits traders who use technical analysis, focus on support/resistance zones, or prefer range-bound strategies.
- Regional currency focus: Pairs like USDJPY, AUDJPY, and NZDUSD tend to be more active. For example, when the Bank of Japan (BoJ) releases economic updates, USDJPY often sees noticeable movement.
- News-based opportunities: Key economic releases from countries like Japan, China, or Australia can drive sharp moves. Traders often monitor events like Australia’s employment data or Japan’s CPI reports during this session.
- Session overlap effect: The Asian session does not overlap with the New York session. However, it does briefly overlap with the early part of the London session. This overlap can occasionally increase volatility in major currency pairs as European traders react to market conditions set during the Asian hours.
Other Glossary Terms
A
- Account Balance
Account balance refers to the amount of funds currently available in a trader’s account.
- Asset Class
An asset class is a group of similar financial instruments you can trade, such as forex, commodities, indices, cryptocurrencies, stocks, or options.
- Ask Price
In CFDs (Contract for Difference) trading, the ask price is the price at which traders can buy an asset.
- Arbitrage
Arbitrage trading involves buying an asset at a lower price on one platform and selling it almost simultaneously at a higher price on another.
- Automated Trading
Automated trading, also called auto trading or algorithmic trading is the process of executing trades based on pre-programmed rules and conditions.
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