Forex trading hours mean that non-stop traders can trade any time of day or night (except weekends) and trade as they wish.
The Forex market is known by various other names such as currency market, foreign exchange or FX, which is an international OTC (Over the Counter) market for currency trading.
This sector determines the Forex rate for each currency. This implies that all aspects of acquiring, trading and selling currencies are fixed or at current prices. In terms of trading volume, it is by far the largest market in the world, followed by the credit market.
Usually, this market is used by people involved in international trade, i.e. receiving payment in local currency from another country. For example, someone from Canada receives dollars in payment for his services. If the value of the CAD rises against the USD, the receiver of the US dollar will enjoy additional profit on top of the trading profit, and vice versa.
This market remains open all day internationally except on weekends. If you explore the forex market, Monday through Friday, you will find that there is at least one market open for trading, even at odd hours.
Digging Deeper into Forex Trading Hours
The global currency markets are made up of hedge funds, investment management organizations, central banks, trading organizations, banks, as well as retail investors and stockbrokers from around the world.
As this market operates in multiple time zones, it can be explored anytime except weekends.
The global currency market is not eclipsed by a single exchange market but by an international exchange network. Forex trading hours are based on when trading is active in all participating countries.
While time zones are outdated, the most generally accepted time zone for each region is as follows.
|The country||Time zone|
|new York||8:00 a.m. – 5:00 p.m. EST (1:00 p.m. – 10:00 p.m. UTC)|
|Tokyo||7:00 p.m. – 4:00 a.m. EST (12:00 a.m. – 9:00 a.m. UTC)|
|sydney||5:00 p.m. – 2:00 a.m. EST (10:00 p.m. – 7:00 a.m. UTC)|
|London||3:00 a.m. to 12:00 p.m. EST (8:00 a.m. to 5:00 p.m. UTC)|
Two of the busiest time zones are NYC and London.
While the Forex market operates around the clock, some currencies in many markets are not traded all day. Most currencies traded around the world involve NZD, CAD, AUD, GBP, JPY, Eur and USD.
What are Forex currency pairs?
Currency pairs are basically national currencies of two nations paired together to be traded in the Forex market. Both currencies contain the exchange rates where the trade will have its position base. All transactions within currencies, whether buying, selling or trading, will be arranged through a currency pair.
The most commonly used trading pairs are CNY (Chinese yuan), CHF (Swiss franc), AUD (Australian dollar), GBP (pound sterling), JPY (Japanese yen), CAD (Canadian dollar), EUR (euro) and USD (US Dollar)
Almost all currencies in the world can be traded in pairs, but some pairs trade more often than others. All major currency pairs have USD.
USD/JPY (Japanese Yen), NZD/USD (Kiwi Dollar), USD/CHF (Swissy Dollar), USD/GBP (Pound-Dollar) are some of the most common currency pairs outside of Eurodollars.
The best currency pairs in the Forex market now.
Cause Behind Endless Forex Trading Hours
The Forex market’s ability to trade all day is due in part to separate time zones, and de facto trading is organized on a system of computers instead of a single tangible exchange that closes at a specific time.
For example, if people hear that the USD closed at a particular rate, that indicates the rate at the market close in New York. Indeed, the rest of the currencies in the world will continue to trade, unlike securities.
Securities such as local bonds, commodities and equities are not as relevant or required on the global stage and therefore are not required to be traded beyond normal trading hours in the country of origin of the transmitter.
There is not enough demand for trading on these markets to justify starting around the clock due to the focus on the local market, which means that only a few stocks are likely to be traded at 3 a.m. morning in the United States.
Some Major Forex Market Regions
Europe is surrounded by top monetary centers like Zurich, Frankfurt, Paris and London. Institutions, dealers and banks all arrange forex trading for themselves and their clients in all of these markets.
Each Forex trading day begins with the opening of the Australian region, followed by Europe and finally North America. As the markets in one zone close, the next one either opens or is already working and continuing to trade in the Forex market. These markets often top for a few hours, providing some of the most operational forex trading times.
For example, if an Australian forex trader wakes up at 3 a.m. and wants to trade a currency, he will not be able to do so through the forex dealers available in Australia, but he can make a desired number of trades through North America . or European traders.
Best Platform for Forex Trading
In Forex markets, leverage is usually as high as 1:100. Simply put, for every $100 of personal account they can trade up to $10,000 of value.
Many traders believe that the reasoning behind such high leverage is because leverage is a function of risk. If the account is properly managed, the risk here automatically becomes manageable, or what other reason can provide them with such leverage.
If you are on the lookout for forex trading and want to get your hands on it, EagleFX is your platform to go. You can start trading here for as little as $10. It currently supports a group of 55 currencies with more on the way.
Now the best part, it offers 1:500 leverage which means up to $100 you can trade up to $50,000.