7PM EST Sunday will be the opening time of Forex market and 5PM EST Friday could be the closing time of this market. In these 5 days, currency trading doesn't cease for a second so it's 24 hours worldwide trading marketplace.
Why Forex trading market is open for 24 hours?
Now as you understand that Forex trading market is open for 24 hours then you need to be trying to find the reasons of this reality. This global market entails participation of the traders from all countries. Opening and closing time in unique countries are distinctive due to distinction in time zone so when opening time and closing time of all the countries are joined, then the result obtained may be the 24 hours trading marketplace.
Big Time Sessions
Forex trading market has the four critical time sessions. These time sessions are US session, Singapore session, London session plus the Tokyo session.
Overlapping Market Hours
The trading sessions in unique countries are different and so the opening and closing time of these sessions are also distinctive. So it takes place that when 1 trading session of 1 nation is open, the trading session of yet another nation also begins at the same time and this causes interaction of trading hours. When the trading hours of various trading sessions interact, then these hours are also named Overlapping Forex market hours.
Best and worst trading time
Order sizes boost throughout the overlapping Forex marketplace hours and this results within the rising of volatility. Many traders want to trade when the volatility increases mainly because the hours when volatility increases are profit earning hours for any Forex trader. So the most effective time of Forex market trading is when the volatility is high plus the chances of loss are less. The key Forex marketplace overlapping is among the Europe and Asia and between the North America as well as the Europe.
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