Timing in the Forex Market
As if it wasn?t complicated enough, Forex trading advertises 24/7 trading possibilities. Use the tips below to consider how the 24/7 timing impacts Forex trading.
Forex trading uses different time zones to determine the times that the financial markets in other countries are open. Because of different time zones, the business day for these markets varies. The most common markets will often be referred to in terms of major financial hubs like NY, Tokyo or London. Sometimes you will see time labeled as GMT, Greenwich Mean Time.
Advertisers note that Forex trading is done 24/7 as a positive feature of Forex trading for traders because there is some active market at all times of day. Since individuals are involved in currency trades, having access to open markets around the world means that trading is going on somewhere. So unlike the stock market where trading stops at the end of the business day where you are, theoretically Forex trading might stop where you are but still be going on elsewhere. Theoretically is used here because there are times when Forex trading actually does seem to more or less stop, specifically on weekends.
One way to understand the impact of time and the 24/7 concept of trading in Forex is that each transaction is a currency exchange, the ?Ex? in Forex. The ability to place the trade means that currencies are being converted by financial institutions. In order to have access to those trades the financial institutions have to be open. The exchange will likely be handled by financial institutions in the country which has open markets at the time of day you make the trade.
As with almost everything else in Forex, there are charts to help Forex investors use time zones to determine the most active times of trading for specific time zones. These active trading times have generated a bulk of information and advice on their own concerning how to use time zones to determine when you should make your trades.
The overlap times are indicated for different time zones. Overlap refers to when more than one market is open at the same time. This information is used to determine times of day when there is more volatility based on open markets and active trading going on in different regions.
Time zone information does not help assess the impact of news stories to which currencies are susceptible. While knowing the times of days when market activity is most active is helpful to a Forex trader, if you are invested in particular currencies this information will not indicate breaking news that might heavily influence a particular currency?s performance. Following the news for a region where you have money invested in the currency remains very important.
Time zone converters are available for free on the Internet that can help investors determine the time zone in particular places. You should use more than one time converter to become familiar with the choices available and which time converter works best for you.
When you trade in currencies you will not want to be glued to the computer all day and all night but since your investments will tend to be in specific currencies you can adjust your schedule to pay attention to market activity during the market hours for countries that have different time zones.
Time zone information is part of Forex trading because by its nature Forex deals in currencies from all over the world. Use the tips above to consider time zones in your Forex trading.
Incoming search terms:
??? ???
Tagged with: euros dollars, exchange rates currency converter, Forex, forex brokers, forex charts, forex currency converter, forex currency exchange rate, forex exchang, forex factory, forex factory calendar, forex market hours, forex news, forex rates, forex trading, forex trading signals, forex trading strategies, forex trading system, forex trading training, forexpros, pounds dollars converterSource: http://www.forexwikipedia.org/articles/timing-in-the-forex-market
sarah palin today show dallas tornado video 1940 census instagram for android dallas news dallas fort worth dfw
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন