The Forex market is a little odd in it’s opening hours. Unlike most financial markets that open around 8:00 am in the morning and close around 6:00 pm in the evening, Forex is open 24 hour per day.
Since Forex lacks a central exchange, it moves from country to country during the week. Forex only closes on weekends when most of the worlds banks are closed.
The Forex market opens Monday at 8:00 am in New Zealand (Auckland) every Monday (4AM Manila Time GMT+12). It then moves around the world to Australia (Sydney), Japan (Tokyo), Europe (Frankfurt), UK (London) and the USA (New York).
It continues this cycle for five days, until the market closes at 6:00 pm on Friday in New York. At this point, the market is closed for the weekend.
The Forex market can stay open 24 hours because it is traded through ECN’s, rather than a physical location.
Why Are Forex Market Hours Important?
It can be confusing what time the market opens, as the time will be different depending on your location around the world.
The easiest way for you to figure out when the Forex market opens is to use my Forex clock. This handy clock shows you which markets are currently open, which are closed, and when the currently open market will close.
This is important to know, as different sessions can be more or less volatile. You will learn more about volatility when you move on to the free course and my trading strategy.
Why is a 24 hour market awesome?
One of the best features of Forex is that it can be traded at any time during the week.
Why is this so cool?
Well, imagine you want to day trade the stock market and you live on the U.S. Eastern Cost. You would likely wake up at 7:00 am to go to work and get home at 6:00pm. That would leave you with almost no time to trade.
With the Forex market you could get home at 6:00pm, or even 10:00pm, open up your charts and trade.
There is no daily rush to open or close trades before the market closes, because it doesn’t close. There are no daily price gaps when the market opens, because it doesn’t close.
Even on bank holidays the Forex market doesn’t close. If one country has a bank holiday, there will always be another country in the same time zone with open banks. This means that Forex transactions can still be processed.
Source: By Nick Bencino of forex4noobs.com. Click here to read the original article.