Acing the Asian Markets: Everything Traders Need to Know

Rewards come to those who persevere on their journey with patience and determination. Rome was certainly not built in a day but neither was Tokyo nor are a trader’s achievements for that matter. Building your knowledge base about all-things trading is an essential step to get you closer to reaping the benefits. That’s why today we’re talking about everything that pertains to the Asian markets and how you can make the most of it.

Asian Markets

SageFX - Jul, 09, 20

Getting to Know the Asian Markets

You’ve probably heard it before that the forex market is open 24 hours a day from Sunday to Friday afternoon. Nonetheless, did you know that this is not one single trading space? There are different markets in key financial centers around the world that together make up the behemoth of a forex market that we all know. It can be said that the market is divided into three main geographical categories: the US, Europe, and Asia. The major sessions are London, the US, and the Tokyo sessions. While the minor ones are primarily Frankfurt, Sydney, Hong Kong, and Singapore.

Given the geographical span, not all Asian sessions open at the same time. However, broadly speaking, to trade the Asian markets, you’ll have to be awake between 11 p.m. and 8 a.m. GMT. The major Asian session (that is Tokyo) is open between midnight and 6 a.m GMT. These hours may seem a bit daunting if you are based outside of Asia. However, just like flowers need more than sunshine to grow, you may need to take the road less traveled sometimes.

Tokyo is the third largest forex trading center in the world. Japan is one of the strongest economies in the world. It’s therefore, no surprise that the Yen is one of the major currencies in the forex markets. Hong Kong and Singapore are also progressively seen as important trading players.


Mastering Asian Forex

So, what do you need to keep in mind before trading forex during the Asian session?

The Asian markets are the first to open. So, when liquidity is restored at the beginning of a new trading week, the Asian markets are the first forex markets to see any action. London and New York sessions are the ones that hold the largest trading volumes. Therefore, it follows that the larger volumes also bring with them more trading opportunities.

However, a good strategic tip is to observe the behavior of the Asian session. This might be an indication of the other sessions’ behavior. When it comes to trading the Asian session itself, the most important thing to keep in mind is that patience is essential. Liquidity might be thinner during this session so you might need to wait for longer periods before you can take action. However, this might also be an opportunity. Indeed, the less frantic nature of this market can give you more time to analyze patterns and make more judicious trades.

Asian Markets and Crypto

By all intends and purposes, cryptos are the latest additions to the market scenes. Is there a correlation between the Asian markets and cryptocurrencies?

More and more Asian countries are enacting regulations for cryptocurrencies while some countries like South Korea and Japan have been on the digital currency wagon from the very start. These legislative movements and a pro-digital mentality might lead to a flurry of crypto activity in Asia. Suffice to say that there are over 400 fintech companies in Singapore alone while one in every three South Koreans owns cryptocurrencies or accepts payments in it. So, Asia may very well become the gauge that sheds light on the future patterns of these digital currencies. Stay tuned next week as we bring you a full analysis.

The path to trading enlightenment may at times seem like an arduous one. Nonetheless, we truly believe that it’s a question of seeking opportunity away from the chattering noise of the crowd. The Asian market may not be the first pathway that comes to mind for traders that are based in Europe or the US. However, it constitutes a very substantial part of the forex (and increasingly) the crypto markets, and where there is an abundance there is also prosperity. So, quieten the mind and opportunity will manifest itself. With 24/7 customer support, up-to-date market insights and leverages up to 500:1; think of SageFX as the wise guide who’s accompanying you on your trading journey.

Start trading on Sage and enjoy all the features on our CRM


Register your account and start trading.

Sign Up


Become a Sage by simulating your trades.

Register as Demo