Can You Seriously Trade FX 24/7?
The currency market commences from Monday morning in Tokyo, Japan to Friday afternoon in New York. Someone around the globe is occupied in forex trading at any given instant.
It does adjourn on weekends so it’s not a valid 24/7 market. So perhaps the apt term would be 24/5 instead of 24/7.
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You ought to understand time zones though in order to surmise exactly when the global markets will open and close. A classic means to do this would be to use UTC units.
It was previously known as GMT which is Greenwich Mean Time and is at present UTC signifying Universal Coordinated Time. It is the actual winter time at zero longitude on the globe that is Greenwich, London.
So, the common FX market hours are 22.00 Sunday UTC to 22.00 Friday UTC. This likens to10pm winter time in the UK.
Since UK is ahead of New York by 5 hours, the forex market universally will open and terminate 5 pm Sunday / Friday in NY, 2 pm West Coast, 8 am Monday/Saturday Australia and 11 pm, in Germany.
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Expressly, here are the hours of consequential global markets:
Sydney: 10 pm to 7 am UTC Tokyo: 12 midnight to 9 am UTC London: 8 am to 5 pm UTC New York: 1 pm to 10 pm UTC
Expressed 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 in fact open 24 hours globally.
It doesn’t indicate that it is advantageous to trade at any time. When a huge market kicks off in its morning, price movement is quite unreliable and anomalous.
A huge number of traders intentionally refrain from avoid trading from 1 to 4 hours daily during the 4 opening times of supreme bourses.
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Thus in theory, trading can be actualized from Sunday to Friday, 24 hours on a daily basis. It even becomes justifiable physically by way of trading software that utilize robots.
But the prudent trader goes for optimal times and is eventually not trading during the complete operating hours of the foreign exchange market.
Notice: Currency trading is risky, may result in considerable losses, and is not appropriate for everyone.