Once you have decided to enter the world of Forex you will find that foreign exchange has many advantages over the capital markets. Including, among others, the very low margins, free trading platforms, the high leverage, a market open 24 hours a day, 5.5 days a week.
This is my main concern in this article to let you know what time you should be ready to go, so you can expect the most from trade, not just assume that the term open market means you have to chance choose a time in the day to trade. In short, it is important to know the best time to start, because if you want to find a significant number of trades, you will need to enter the foreign exchange market at the best period, ie, when the activity, the volume of transactions, is the highest.
Every time someone, somewhere in the world buys and sells currencies. if a market closes, another market opens. The exchange continues as day becomes night and night becomes day. Giving you full 5.5 days. The Forex market started in New Zealand to Sunday 17 hours GMT-5 and is followed by Australia, Asia, the Middle East, Europe and America in that order and throughout the day and throughout the week until Friday, 16 hours GMT-5 when the U.S. market closes.
Other important things that every trader should know are: the markets of the United States and United Kingdom account for over 50% of transactions on the foreign exchange market, Forex major markets are: London, New York and Tokyo. Nearly two-thirds of NY activity occurs in the morning hours while European markets are open. This may be one of the most important activity is the heaviest trading when the major markets overlap.
So the answer to the question "At what point should I trade?" Is dictated by this last characteristic, you should be trading when the major markets overlap. Now when they overlap?.
Considering the different time zones of the world and time of opening and closing of markets del'Australie, New Zealand, Japan, America and Europe. We can come to the conclusion that there are two important gaps in time when two major markets overlap during trading hours. These hours are 2:00 to 4:00 GMT-5 (Asia / Europe) and from 8:00 to 12:00 GMT-5 (Europe / N. America). So if you want to catch the best opportunities for exchanges of the day and you are in the Americas, you must be prepared to wake up early or stay up late sometimes. Of course, things change in the world. So what's the best part of the world or you can trade during these periods without need to wake up early? Maybe Ukraine:)
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