Make Use of Forex Trading Hours

The main advantage to trading in the Forex market is the hours of operation. Unlike the traditional stock exchange, the Forex market is open all day. This allows traders to conduct trade activities at any time without restrictions. This is considered to be a 24 hour market, which is one of the most attractive features of trading Forex. Many traders are on the go and cannot trade within a specific time frame, so having the ability to conduct a trade at 2 am if necessary is a great feature. While the Forex market is available at most times, there are certain times when trading will be best and when it would be best to avoid trade activities.

Even though the market is open 24 hours a day, each financial center, such as London, New York and Australia will have their own operating hours. These are usually from 8 am to 4:30 pm. Since so many financial centers around the globe are operating, it is possible to have times when two or more markets are overlapping. For example, the New York and London markets will overlap from 8 am to 12 pm while the Tokyo and London markets will overlap at a different time frame. These overlapping periods will be the best tome to participate in trades because the volume, or liquidity is at its highest.

In addition to the overlapping times, there are other times that traders will prefer to trade. These include in the middle of the week, where the most movement occurs. Many traders will choose to trade during the operating hours of the largest financial centers, including Tokyo, New York and London. While there are many great times to conduct Forex trades, there are also times in which trades should be avoided. These include Sundays because of the limited volume, Fridays because the market is unpredictable on this day, holidays, which have limited volume and between 4 pm and 6 pm EST, when the market volume is low. Knowing when to trade and when to avoid trading can help investors increase returns and have more success with Forex trading.

Forex Related Articles

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