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Is Forex Trading a 24/7 Task?

Posted February 10th, 2010 by admin

The currency market convenes from Monday morning in Tokyo, Japan to Friday afternoon in New York. All day and night at least one place on the globe, forex is traded.

Still it is not a 24/7 market for it does stop during weekends. It’s in a way 24/5.

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If you want to know the correct times that the markets open and close, you have to take time zones into consideration. A classic means to do this would be to use UTC units.

It was earlier known as GMT which is Greenwich Mean Time and is at present UTC signifying Universal Coordinated Time. It’s in reality the standard time in London, Greenwich to be correct which also happens to be explicitly zero longitude on the globe.

Accordingly the standard foreign exchange market working hours would be commencing from Sunday 22:00 UTC to Friday 22:00 UTC. In UK wintertime it will be 10 pm.

Since UK is ahead of New York by 5 hours, the forex market universally will open and wind up 5 pm Sunday / Friday in NY, 2 pm West Coast, 8 am Monday/Saturday Australia and 11 pm, in Germany.

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The hours of the different important national markets are as aforementioned:

London: 8 am to 5 pm UTC Sydney: 10 pm to 7 am UTC Tokyo: 12 midnight to 9 am UTC New York: 1 pm to 10 pm UTC

Portrayed in EST (Eastern US time):

Sydney: 5 pm to 2 am EST Tokyo: 7 pm to 4 am EST London: 3 am to 12 noon EST New York: 8 am to 5 pm EST

From the given facts it can be seen that the markets are certainly open 24 hours globally.

However, this does not certainly mean that trading will be good at all of these periods. Just after a leading market opens, the prices can be very volatile and fluctuating.

Many traders will stick out of the foreign exchange market for up to an hour four times a day when the financial markets are getting ready to commence trade in these major cities.

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So in a sense you may trade 24 hours a day from Sunday night to Friday night. Automated software in the cast of a forex robot can even make this physically conceivable.

In spite of this, knowledgeable traders will decide to select optimal times and not assert on effecting transactions in the forex market during the whole time that it is working.

Notice: Currency trading can be dangerous, may result in considerable losses, and is not suited for everybody.

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