Forex trading hours

by : Nick Schultz

While working in an office, we need to follow the office working hours, which is usually when we need to be at the office carrying out our duties. And this is something that been imbedded in us since our school days when we woke up at a certain time so we can reach school on time and again when school closed, we would head home at the same time every day. Just like this, in every aspect of our lives, we are ruled by time, and have fixed hours when we do certain activities. While trading in the forex market , one needs to be aware of the timings and the forex trading hours to know when is the best time to make a deal or pull out of one. In forex trading, it is very difficult to say x hours because people from all over the world are involved here and each one has a different time zone. The trade market begins in Tokyo, at Eastern standard time of 7pm. And so this means that by then it is nearly 9am in Singapore and in Germany it is just about 2am. The time in New York is about 8am and time for forex trade to commence. This is the time when all markets open for forex trading and it goes through a full circle and comes to an end when it is starting in Tokyo once again, but 7pm Eastern standard time.

The forex trading hours determines when an investor can make his trade. There are times when he is sitting in USA making a deal with a party in Tokyo, and when night falls there, it is the end of the day for him. Even though there maybe no trade happening in Japan there might be some in USA, and this will have an impact on the currency rate in his country. So, it can be said that at any given point of time someone is trading and someone is making money out of the forex trade. The forex trading hours extends for about 5 and a half working days every week and there are times when business exchanges overlap when time zones meet and this is when peak transactions take place.

The trading hours will also determine the kind of business deals being carried out between countries. And the one who has made an investment in a currency pair across the globe could earn couple of pips while he is sleeping. These are basically profitable returns on the money he has put into the currency pair. One other thing to remember is that the money a person earns will be in the currency of the other country, and so he needs to be aware of the exchange rates and conversion rates to calculate how much his actual earnings are. Sometimes people get caught up in their earnings but fail to realize that their actual profits might be less if the currency 's value is lesser than their own. All these need to be done within the trading hours.