Trading hours are important to understand if you plan on taking part in the Forex market. The US and London markets have different opening and closing times, so it’s crucial to determine your schedule before you begin trading. You should also know when the Asian markets are open and closed. Trading hours are also affected by daylight saving time and some public holidays. Traders cannot close positions when the markets are closed, but they can still place entry and exit orders and trailing stop orders. During the weekend, spreads are often wider than during the week. This can cause orders to be triggered and margin closeouts.
For those in the US, a 24-hour currency exchange may be ideal. But if you live on the west coast, you might not be able to trade until 9 p.m. ET. Similarly, the worker bees on the west coast might not return to their hives until after 9 p.m. ET, so they would not be able to participate in open market trading. Forex trading hours are important for US traders, but you should also know when they are open in the global market.
Before you begin trading, make sure you know the laws of the country you’re in. If you don’t, you’ll face stiff penalties from the IRS. Forex trading is legal in the United States, but you must follow US tax requirements if you’re an American citizen. Practice is essential, and you need to have a willingness to learn and apply your effort to master it.
Forex trading hours in the United States are very flexible and can be based on your needs. The first thing you need to do is check your local timezone. This will help you determine the best time to trade. The best time to trade forex is between 8 a.m. ET and 12 p.m. ET, which overlaps the London and U.S. markets.
Forex is a huge market, which generates trillions of dollars in turnover daily. This volume is nearly forty times more than the volume traded on the NASDAQ market in the United States each day. As a result, you should be able to get a lot of profit out of it.
Besides the huge volume of trades, the FOREX market also provides investors with greater flexibility in terms of size and quantity. Most brokers will allow trades of $25,000 USD or more. This allows you to tailor your trades to suit your needs and risk tolerance. This can be especially beneficial for portfolio managers and corporate treasurers.
The most volatile trading times are the hours between 0930 hours and 1630 hours. As a result, it is crucial to be aware of these hours. Knowing when these sessions are open can help you avoid trading at times when the market is too volatile or too quiet.