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When a businessman wants to start his business in a city/country, he wants to see stability in security & social conditions which ultimately creates suitable economic environment for business to grow.
When security & social conditions deteriorates in a city/country, the businesses starts moving out to a city/country which has better economics environment, this sentiment (in this troubled city/country) is called RISK OFF as businesses & investor don’t find this city suitable for business or investment activities. Once the security & social conditions gets improve in this city/country & businesses/investors see a longer term prospect for business, they starts moving back. This sentiment is called RISK ON as they are ready to take risk on their investments for better profits.
Once the security & social conditions gets improve in this city/country & businesses/investors see a longer term prospect for business, they starts moving back. This sentiment is called RISK ON as they are ready to take risk on their investments for better profits.
When a businessman wants to start his business in a city/country, he wants to see stability in security & social conditions which ultimately creates suitable economic environment for business to grow.
When security & social conditions deteriorates in a city/country, the businesses starts moving out to a city/country which has better economics environment, this sentiment (in this troubled city/country) is called RISK OFF as businesses & investor don’t find this city suitable for business or investment activities. Once the security & social conditions gets improve in this city/country & businesses/investors see a longer term prospect for business, they starts moving back. This sentiment is called RISK ON as they are ready to take risk on their investments for better profits.
Once the security & social conditions gets improve in this city/country & businesses/investors see a longer term prospect for business, they starts moving back. This sentiment is called RISK ON as they are ready to take risk on their investments for better profits.
The global markets run on same idea. Whenever there is unrest in the world e.g.
The global markets run on same idea. Whenever there is unrest in the world e.g.
Once these unrest gets settled or their effects fade away, RISK ON sentiment kicks back in e.g.
This triggers RISK ON sentiment, the large investors start move back their money from safe haven to riskier asset classes.
Japanese Yen
After getting hit with 2 atom bombs in 1945, the way Japan recovered was awesome as compare to other economies which were far better than Japan at that time.
Also you have heard the Japanese proverb
If someone can do it, you can do it.
If no one can do it, you MUST do it.
That’s why the large investors has a firm belief on Japan & its economy that if they invest in Japanese yen, their investment will be in safe haven even in toughest economic times.
This creates a problem for Japan as their currency keep appreciating in value which badly affect their economic growth in terms of Exports, GDP & Employment.
To counter this problem Bank of Japan introduced negative interest rate of -0.1% became the second country (along with Switzerland) which has negative interest rate in developed countries. Also they have Quantitative Easing running for some time.
Japanese Yen
After getting hit with 2 atom bombs in 1945, the way Japan recovered was awesome as compare to other economies which were far better than Japan at that time.
Also you have heard the Japanese proverb
If someone can do it, you can do it.
If no one can do it, you MUST do it.
That’s why the large investors has a firm belief on Japan & its economy that if they invest in Japanese yen, their investment will be in safe haven even in toughest economic times.
This creates a problem for Japan as their currency keep appreciating in value which badly affect their economic growth in terms of Exports, GDP & Employment.
To counter this problem Bank of Japan introduced negative interest rate of -0.1% became the second country (along with Switzerland) which has negative interest rate in developed countries. Also they have Quantitative Easing running for some time.
Switzerland is a country in the middle of Europe surrounded by Germany, France, Italy & Austria so they have no access to sea. They are part of EEA (European Economic Area) but not EU (European Union).
Sea-Ports are the biggest advantage for any country as the sea trade is the cheapest way of transportation. Switzerland has this disadvantage as they have is no access to ocean (as mentioned above) which leaves them with Mountains & Lakes.
The swiss people didn’t allow this disadvantage to hinder their economic growth. They developed their country in the way so it became attractive for tourists. They also introduced the modern banking system; Bank of International Settlement (BIS) in swiss city Basel made banking laws & regulations which are mandatory for European deposit taking institutions & taken voluntarily by the countries (for their deposit taking institutions) in other part of the
world, apart from USA. BIS is the same institutions which reports the daily volume of FOREX market.
The large investors also consider swiss nation as hard working & innovative as they developed their economy with many disadvantages, so in RISK OFF conditions they invest in Swiss France after Japanese Yen. Similarly, it gives a headache to Swiss National Bank (SNB) as they have to continuously devalue their currency when RISK OFF appreciates it, to save their Export, GDP & Employment. In doing so they introduced negative interest rates of – 0.75% & regularly intervene the FX market that’s why we see some time USD/CHF starts rising aggressively without any news, this intervention is condemned by US president Donald Trump recently.
Switzerland is a country in the middle of Europe surrounded by Germany, France, Italy & Austria so they have no access to sea. They are part of EEA (European Economic Area) but not EU (European Union).
Sea-Ports are the biggest advantage for any country as the sea trade is the cheapest way of transportation. Switzerland has this disadvantage as they have is no access to ocean (as mentioned above) which leaves them with Mountains & Lakes.
The swiss people didn’t allow this disadvantage to hinder their economic growth. They developed their country in the way so it became attractive for tourists. They also introduced the modern banking system; Bank of International Settlement (BIS) in swiss city Basel made banking laws & regulations which are mandatory for European deposit taking institutions & taken voluntarily by the countries (for their deposit taking institutions) in other part of the
world, apart from USA. BIS is the same institutions which reports the daily volume of FOREX market.
The large investors also consider swiss nation as hard working & innovative as they developed their economy with many disadvantages, so in RISK OFF conditions they invest in Swiss France after Japanese Yen. Similarly, it gives a headache to Swiss National Bank (SNB) as they have to continuously devalue their currency when RISK OFF appreciates it, to save their Export, GDP & Employment. In doing so they introduced negative interest rates of – 0.75% & regularly intervene the FX market that’s why we see some time USD/CHF starts rising aggressively without any news, this intervention is condemned by US president Donald Trump recently.
Gold & Silver are taken as precious metals since old times, they were use to trade before currencies were introduced. Large investors still believe that their capital is safe if its invested in Gold & Silver in RISK OFF times.
This is a fixed income security which is back by sovereign guarantee of US Government. This guarantee make it a safe haven where capital of large investor is safe during RISK OFF times.
Gold & Silver are taken as precious metals since old times, they were use to trade before currencies were introduced. Large investors still believe that their capital is safe if its invested in Gold & Silver in RISK OFF times.
This is a fixed income security which is back by sovereign guarantee of US Government. This guarantee make it a safe haven where capital of large investor is safe during RISK OFF times.
Traders must tune in to News Squawk / News wire service to spot any sudden news which can change the market sentiment or risk sentiment. An excellent free news squawk service being provided by forexlive.com, which is 10 seconds late.
Risk OFF
USD/JPY, USD/CHF, AUD/JPY, AUD/CHF, NZD/JPY, NZD/CHF, S&P500 & other indices will start falling.
Gold, Silver & Treasury Bonds will start rising.
Risk ON
USD/JPY, USD/CHF, AUD/JPY, AUD/CHF, NZD/JPY, NZD/CHF, S&P 500 & other indices will start rising.
Gold, Silver & Treasury Bonds will start falling.
Traders must tune in to News Squawk / News wire service to spot any sudden news which can change the market sentiment or risk sentiment. An excellent free news squawk service being provided by forexlive.com, which is 10 seconds late.
Risk OFF
USD/JPY, USD/CHF, AUD/JPY, AUD/CHF, NZD/JPY, NZD/CHF, S&P500 & other indices will start falling.
Gold, Silver & Treasury Bonds will start rising.
Risk ON
USD/JPY, USD/CHF, AUD/JPY, AUD/CHF, NZD/JPY, NZD/CHF, S&P 500 & other indices will start rising.
Gold, Silver & Treasury Bonds will start falling.
Trading Sessions is one of the most important topic a trader MUST know about. Having a good idea about the trading session timings increases the profitability, as trader would know the times when a specific pair would start moving & when it will start ranging.
Once a session gets started, large players & professional traders of that particular country comes on their trading desks and start taking their positions which increase the liquidity in that pair which contains that currency. This is the time when that pair starts moving so the traders should start looking for trading opportunities in it. When session is about to over, the traders should look for exits from profitable trades or stop looking for new opportunities in that pair as the large players & professional traders finish off their day & leave their offices to go back to home. Although that pair gets traded electronically by traders trading from all over the world but this is the time when the liquidity drops in that pair & it starts ranging
Summer Times (April – October)
Trading Sessions is one of the most important topic a trader MUST know about. Having a good idea about the trading session timings increases the profitability, as trader would know the times when a specific pair would start moving & when it will start ranging.
Once a session gets started, large players & professional traders of that particular country comes on their trading desks and start taking their positions which increase the liquidity in that pair which contains that currency. This is the time when that pair starts moving so the traders should start looking for trading opportunities in it. When session is about to over, the traders should look for exits from profitable trades or stop looking for new opportunities in that pair as the large players & professional traders finish off their day & leave their offices to go back to home. Although that pair gets traded electronically by traders trading from all over the world but this is the time when the liquidity drops in that pair & it starts ranging
Summer Times (April – October)
It starts from early morning 3:00 am (PST) Pakistan Standard Time in summer times & retarded by 1 hour to make 2:00 am (PST) in winter times.
It ends on (mid-day) 12:00 pm (PST) in summer times & retarded by 1 hour to make 11:00 am (PST) in winter times.
Following pairs starts moving from start of this session & starts ranging once session is over.
AUD/USD, EUR/AUD, GBP/AUD, AUD/JPY, AUD/CHF, AUD/NZD & AUD/CAD
NZD/USD, EUR/NZD, GBP/NZD, NZD/JPY, NZD/CHF, NZD/CAD
It starts from early morning 3:00 am (PST) Pakistan Standard Time in summer times & retarded by 1 hour to make 2:00 am (PST) in winter times.
It ends on (mid-day) 12:00 pm (PST) in summer times & retarded by 1 hour to make 11:00 am (PST) in winter times.
Following pairs starts moving from start of this session & starts ranging once session is over.
AUD/USD, EUR/AUD, GBP/AUD, AUD/JPY, AUD/CHF, AUD/NZD & AUD/CAD
NZD/USD, EUR/NZD, GBP/NZD, NZD/JPY, NZD/CHF, NZD/CAD
It starts from early morning 4:00 am (PST) Pakistan Standard Time & ends on afternoon 1:00 pm (PST).
Following pairs starts moving from start of this session & starts ranging once session is over.
USD/JPY, EUR/JPY, GBP/JPY, CHF/JPY, AUD/JPY, NZD/JPY & CAD/JPY
It starts from early morning 4:00 am (PST) Pakistan Standard Time & ends on afternoon 1:00 pm (PST).
Following pairs starts moving from start of this session & starts ranging once session is over.
USD/JPY, EUR/JPY, GBP/JPY, CHF/JPY, AUD/JPY, NZD/JPY & CAD/JPY
It starts from (mid-day) 12:00 pm (PST) Pakistan Standard Time in summer times & advanced by 1 hour to make 1:00pm (PST) in winter times.
It ends on 9:00 pm (PST) in summer times & advanced by 1 hour to make 10:00pm (PST) in winter times.
Following pairs starts moving from start of this session & starts ranging once session is over.
EUR/USD, EUR/GBP, EUR/JPY, EUR/CHF, EUR/AUD & EUR/CAD
GBP/USD, GBP/JPY, GBP/CHF, GBP/AUD, GBP/NZD & GBP/CAD
USD/CHF, CHF/JPY, AUD/CHF, NZD/CHF & CAD/CH
It starts from (mid-day) 12:00 pm (PST) Pakistan Standard Time in summer times & advanced by 1 hour to make 1:00pm (PST) in winter times.
It ends on 9:00 pm (PST) in summer times & advanced by 1 hour to make 10:00pm (PST) in winter times.
Following pairs starts moving from start of this session & starts ranging once session is over.
EUR/USD, EUR/GBP, EUR/JPY, EUR/CHF, EUR/AUD & EUR/CAD
GBP/USD, GBP/JPY, GBP/CHF, GBP/AUD, GBP/NZD & GBP/CAD
USD/CHF, CHF/JPY, AUD/CHF, NZD/CHF & CAD/CH
t starts from evening 5:00 pm (PST) Pakistan Standard Time in summer times & advanced by 1 hour to make 6:00 pm (PST) in winter times.
It ends on early morning 2:00 am (PST) in summer times & advanced by 1 hour to make 3:00 am (PST) in winter times.
Almost everything starts moving from start of this session & starts ranging once session is over.
EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, NZD/CAD & USD/CAD
EUR/CAD, GBP/CAD, CAD/JPY, CAD/CHF, AUD/CAD & NZD/CAD
All commodities & Indices too.
t starts from evening 5:00 pm (PST) Pakistan Standard Time in summer times & advanced by 1 hour to make 6:00 pm (PST) in winter times.
It ends on early morning 2:00 am (PST) in summer times & advanced by 1 hour to make 3:00 am (PST) in winter times.
Almost everything starts moving from start of this session & starts ranging once session is over.
EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, NZD/CAD & USD/CAD
EUR/CAD, GBP/CAD, CAD/JPY, CAD/CHF, AUD/CAD & NZD/CAD
All commodities & Indices too.
Most of professionals traders doesn’t keep open their positions over weekend because any unprecedented catastrophic event, major geopolitical or financial/economical news over weekend may cause massive gap on market open on Monday morning 3:00 am PST (10:00pm GMT Sunday) e.g. News on possible Greece default caused over 100 pips gap in EUR/USD & other Euro crosses. This gap may go against your open position causing unexpected/uncontrolled losses as well as may work in your favor in your open position, leaving you in a gambling like situation. Trader should also avoid trading in early morning times on Monday morning at Australia/Sydney open 3:00 am PST because of lack of liquidity as It takes around 1 – 2 hour for most of major liquidity providers to come online. This lack of liquidity cause wider spread, making you paying too much spread in case you decide to take position & may hit your SL in case you kept your position opened over weekend.
Most of professionals traders doesn’t keep open their positions over weekend because any unprecedented catastrophic event, major geopolitical or financial/economical news over weekend may cause massive gap on market open on Monday morning 3:00 am PST (10:00pm GMT Sunday) e.g. News on possible Greece default caused over 100 pips gap in EUR/USD & other Euro crosses. This gap may go against your open position causing unexpected/uncontrolled losses as well as may work in your favor in your open position, leaving you in a gambling like situation. Trader should also avoid trading in early morning times on Monday morning at Australia/Sydney open 3:00 am PST because of lack of liquidity as It takes around 1 – 2 hour for most of major liquidity providers to come online. This lack of liquidity cause wider spread, making you paying too much spread in case you decide to take position & may hit your SL in case you kept your position opened over weekend.
The best time to trade is when UK session overlaps with US session this is the most liquid time of forex market. Almost everything moves during this time. GBP & Gold gives high probable moves an hour before London close/London Fix.
The second best time in London open when EUR & GBP crosses start moving so trader may find high probable opportunities. In some days they start moving on Germany/Frankfurt open couple of hours before London open.
The third best time is Sydney Close & Tokyo Close, trader can find suitable opportunities in AUD, NZD & JPY crosses an hour & half before Sydney Close & Tokyo close. Trader can also back-test the moves in any pair to know the moving time of that particular pair.
The best time to trade is when UK session overlaps with US session this is the most liquid time of forex market. Almost everything moves during this time. GBP & Gold gives high probable moves an hour before London close/London Fix.
The second best time in London open when EUR & GBP crosses start moving so trader may find high probable opportunities. In some days they start moving on Germany/Frankfurt open couple of hours before London open.
The third best time is Sydney Close & Tokyo Close, trader can find suitable opportunities in AUD, NZD & JPY crosses an hour & half before Sydney Close & Tokyo close. Trader can also back-test the moves in any pair to know the moving time of that particular pair.
Whenever you have a doubt about timings or sessions, you may contact XM friendly live chat which is available in Urdu as well.
Keep an eye on your e-mail inbox as XM sends regular e-mail to inform its clients about day light saving (DST) when some countries decide to advance/retard their clocks by 1 hour & any change in timings/sessions due to holidays.
According to Pakistan Standard Time, XM server time is -2 hours nowadays.
There are many free indicators/Expert Advisor available free over internet which can help you recognizing/reminding the timings of trading sessions.
Whenever you have a doubt about timings or sessions, you may contact XM friendly live chat which is available in Urdu as well.
Keep an eye on your e-mail inbox as XM sends regular e-mail to inform its clients about day light saving (DST) when some countries decide to advance/retard their clocks by 1 hour & any change in timings/sessions due to holidays.
According to Pakistan Standard Time, XM server time is -2 hours nowadays.
There are many free indicators/Expert Advisor available free over internet which can help you recognizing/reminding the timings of trading sessions.
