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Volatility and liquidity: Stock market sessions

Asia, Europe, USA - when and how to trade?

Kacper MrukJuly 7, 2026Updated: July 7, 20261 min read
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Trading on Financial Markets: Choosing the Right Session

Trading on financial markets is the art of choosing the right session. What are the differences between the Asian, European, and American sessions, and how can they be leveraged to your advantage?

  • Asian Session:

    • The Asian session is characterized by lower volatility compared to the other sessions.
    • Major currency pairs like USD/JPY and AUD/USD are more actively traded during this time.
    • It typically runs from 00:00 to 09:00 (Warsaw time).

  • European Session:

    • The European session is known for its high volatility and trading volume.
    • It overlaps with the Asian session at the beginning and the American session towards the end, creating significant market movements.
    • This session runs from 09:00 to 17:00 (Warsaw time).

  • American Session:

    • The American session is marked by high trading activity, especially in stocks and commodities.
    • It often sees major economic data releases that can impact the markets.
    • This session runs from 15:00 to 23:00 (Warsaw time).

By understanding these differences, traders can choose the best time to enter or exit trades based on market conditions and volatility.

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Further Reading

What are you doing wrong?

Many beginner traders do not pay attention to the specifics of individual trading sessions, which leads to erroneous trading decisions. For example, trading during the Asian session, expecting the same volatility as in the American session, can end in frustration and losses. Imagine buying contracts on the S&P 500 worth 10k PLN during low liquidity in the Asian session. The spread is then 0.5% - that's already 50 PLN in the negative without any market movement. Or you set a stop-loss order and, due to low volume, it is not filled, and the price continues to move in an unfavorable direction, which could cost you an additional 100 PLN.

Why is it a problem?

Each session has its unique volatility and liquidity. The Asian session is characterized by lower volatility, which means that prices move more slowly, and the opportunities for profits and losses are smaller. The European session is when the market comes alive, and volatility increases. The American session is the most dynamic and carries the greatest opportunities for profits, but also for losses. Ignoring these differences can lead to strategies that are not suited to market conditions, resulting in unforeseen price slippage and ineffective orders.

Also read

Geopolitical tensions and court decisions affect the market.AUD: CPI m/m

How much does it cost you?

Assume you have a capital of 15k PLN. Trading unknowingly during the Asian session, you incur a spread cost of 0.5% on each transaction, resulting in a loss of 75 PLN at the start. If you make 10 such transactions in a month, that amounts to 750 PLN. Adding to this the losses due to price slippage of another 0.5%, the monthly loss can reach up to 1500 PLN. Profits during these sessions are harder to achieve, which means that the entire investment may not pay off.

What to do differently

To better utilize the specifics of trading sessions, consider the following actions:

  • Consider trading during the European or American sessions when volatility and liquidity are higher.
  • Adjust your strategy for each session – during the Asian session, you can focus on smaller, more stable movements.
  • Ensure that your orders account for possible price slippage and set appropriate stop-losses.
  • Analyze the time differences between sessions to adjust your trading rhythm to your lifestyle while ensuring the ability to react to market changes.

🎯 Habit to implement

Daily Analysis of Volatility and Liquidity of Each Session

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About the author

Kacper Mruk

XAUUSD & ETHUSD Trader | Macro + options data | Think, don't follow

Creator of Take Profit Trader's App. Specializes in XAUUSD and ETHUSD, combining macro analysis with options data. Actively trading since 2020.

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