Can You Actually Trade Currency 24/7?
April 15, 2010 | In: General
The foreign exchange market convenes from Monday morning in Shenzen, China to Friday afternoon in New York. Somewhere around the world at all hours of the day or night, you deal in FX.
This would in actuality be appropriate in weekdays only as the market stays closed on weekends. 24/5 would be more accurate.
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You ought to understand time zones though in order to determine exactly when the global markets will open and close. By using UTC, it becomes a simplified procedure.
It was previously known as GMT which is Greenwich Mean Time and is at present UTC expanding to Universal Coordinated Time. It’s in reality the standard time in London, Greenwich to be correct which also happens to be categorically zero longitude on the globe.
In these terms, the acknowledged operating schedule of the forex market would be from Sunday 22:00 UTC to Friday, 22:00 UTC. In UK wintertime it is 10 pm.
Considering that New York time is 5 hours behind UK time, the forex market globally would open and close at Sunday 5 pm and Friday 5 pm in New York, 2 pm at the west coast of the US, 11 pm at Germany and then 8 am Monday and 8 am Saturday in Australia, Sydney to be exact.
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The hours of the different leading national markets are as below:
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
Alternately we can assert that 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 compulsorily mean that trading will be good at all of these instances. When a significant market kicks off in its morning, price movement is quite unreliable and wayward.
Many traders will remain out of the currency market for up to an hour four times a day when the financial markets are getting up in these major cities.
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In theory then, trading can be accomplished from Sunday night through Friday night, 24 hours daily. Automated software in the cast of a forex robot can even make this physically attainable.
In the face of this, knowledgeable traders will choose to select optimal times and not assert on executing transactions in the forex market during the whole time that it is in operation.
Note: Foreign Exchange investing can be dangerous, can end up in material losses, and is not suited for everybody.
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