Forex market has the highest liquidity volume. Trading volume per day exceeds $3 trillion. High liquidity gives the ability in buying and selling at any time fast. A highly liquid market like the forex market can see large trading volumes transacted with relatively minor price changes.
An illiquid market will tend to see prices move more rapidly on relatively lower trading volume. A market that trades during certain hours also represents a less liquid market.
Trading in the Asia-Pacific session account for about 21 percent of total trading volume. The overall trading direction for the AUD,JPY and NZD can be set for the entire session depending on news and data reports.
Trading in the European and London session account over 50 percent of the trading volume. As it overlaps with the Asia Pacific session and North American session its liquidity is at absolute peak! News and data reports are released during the morning and the biggest movers would be EUR,GBP and CHF.
Trading in the North American session account about 22 percent of the total trading volume. However, the overlap between the European and Amercian trading session make the trading volume super high! Some of the biggest and most directional price movements take place during this cross period.
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