A forex trading hour’s clock refers to a period that constitutes one day of carrying out business in the forex market. The forex trading hours clock covers the period from when the opening bell rings to the closing bell. When one wants to trade in the forex market, all the orders should be placed within the two bells. The bears and the bulls make a significant contribution to modeling the market prices within the forex market.
Changes of the Forex Trading Hours Clock.
The forex trading hours clock is not constant every time. It changes during the weekends. However, in a typical weekday, the clock is open for 24 hours in a day.
During the weekends, the time may change for several reasons. The reasons include the number of participants in the business and the types of currencies available for trade.
Features of Forex Trading Hours Clock.
The forex trading hours clock contains some distinctive characteristics that identify it. The features include the following;
1. Forex Market Centre
This refers to the place where the forex trading is taking place. Usually, it is the name of the city and the country. In most cases, the name of the city comes first, and the country name follows. This system is used to efficiently identify the market centers used.
2. Time Zone
In forex trading, different currencies are in the market. Since time is a variant in different countries, there must be a standard time that shall be used in the trading. Therefore, in a trading session, the time zone of a particular city is taken to guide the forex trading.
3. Opening Time and Date
In forex trading, the time of opening the trade must be indicated. Sometimes the date is also crucial. The opening time is given in either 24 hours system or the 12 hours. The opening time marks the starting point of a trading session for recording and keeping the trader aware of the time.
4. Closing Time and Date
The closing time and date of a trading session are also very valuable, just like the opening time. The closing time indicates the end of the session. It informs the forex trader when the session is over to be able to know whether he made a profit or a loss.
5. Status of the Session
The forex trading clock also indicates the state of the trade. The session could be open or closed. It informs the trader when the session is open to start a trade.
The above elements are essential to ensure that the trader places the trade on time.
Global Forex Market Hours
The forex trading business has 15 major exchanges in the world. The exchanges are open from Monday to Friday, but each of them has distinct hours of trading within the forex trading hours clock. However, there are four major significant windows of trading which include the following;
• Singapore: 3pm to 12.00am
• Tokyo: 7 pm to 4 am
• London: 3 am to 12.oo pm
• New York: 8 am to 5 pm
All the trading sessions shown above are represented in the Eastern Standard Time clock system.
Most Active Time to Trade in Forex Trading
Although it is quite hard to tell the best time to trade in forex, there are some apparent times to play. Such times are the most successful for any trader.
These times include the US trading session during the late hours, the Asian and the Early European session. Basically, in the Eastern Standard Time, the time is between 2 pm, and 6 am.
During the trading sessions. Sometimes two trades happen at the same time. These times are good to trade since there are huge volumes that result from different markets.
In conclusion, the forex trading hours clock never goes off except when banks are on holidays and during the weekends. One of the advantages of the round the clock trading is that one can trade at their own free time.
It is also suitable for traders to strive to understand that there might be some differences in local forex trading sessions. Several sessions are distinctive due to amounts of pairs of currencies are concerned. When trading sessions overlap, it is good to know to reap the best from the overlap.