Trading Foreign Exchange 24/7 - Is This Indeed Possible?
Monday, January 31st, 2011Beginning from Monday morning in Australia to Friday afternoon in NY, the forex market is active. Someone around the globe is occupied in forex trading at any given hour.
Nevertheless it is not a 24/7 market for it does ceases to trade during weekends. 24/5 would be more accurate.
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So should you want to keep apprised about the appropriate opening and closing times of the forex market, consider time zones. It is very lucid when evinced in UTC.
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It was hitherto known as GMT which is Greenwich Mean Time and is at present UTC denoting Universal Coordinated Time. It’s in fact the standard time in London, Greenwich to be clear-cut which also happens to be categorically zero longitude on the globe.
Therefore the standard foreign exchange market working hours would be starting from Sunday 22:00 UTC to Friday 22:00 UTC. In UK wintertime it is 10 pm.
Since UK is ahead of New York by 5 hours, the forex market all over 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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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
Illustrated in EST (Eastern US time):
Sydney: 5 pm until 2 am EST Tokyo: 7 pm through 4 am EST London: 3 am until 12 noon EST New York: 8 am until 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 periods. When a huge market initiates in its morning, price movement is quite unreliable and anomalous.
A considerable number of traders premeditatively abstain from avoid trading from 1 to 4 hours daily during the 4 opening times of supreme bourses.
In theory then, trading can be consummated from Sunday night through Friday night, 24 hours daily. Automated software in the cast of a forex robot can even make this physically conceivable.
Regardless of this, accomplished traders will choose to select optimal times and not insist on effecting transactions in the forex market during the whole time that it is operational.
Notice: FX trading is high-risk, can result in significant losses, and is not suitable for every person.