As soon as the banks open in Tokyo, the Australian importer will need to convert its Australian Dollars to Japanese Yen in order to pay for the cars to the Japanese car manufacturer.Īs the payment for 200 cars would a substantial amount, the demand for the Japanese Yen will suddenly go up early on Monday morning, which will turn the Yen bullish.
According to the contract between two parties, the Australian car importer would settle the invoice amount on the first hour of Monday. Imagine that a deal was made last week between Mitsubishi in Japan and a car dealer in Australia who wants to import 200 units of Mitsubishi's latest Sports Utility Vehicles (SUVs). You see, the global currency market is dominated by large banks, commercial companies taking part in import and export of goods and services, central banks, hedge funds, and retail forex traders. Understanding Relationship Between Currency Pairs, Trading Volume, and Time Zones in New York, the United States at the Eastern Standard Time (EST) zone, which is 5 hours behind the Greenwich Mean Time (GMT) or GMT -5. It starts at 7:00 am, in Sydney, Australia - at the Australian Eastern Standard Time (AEST) zone, which is 10 hours ahead of the Greenwich Mean Time (GMT) or GMT +10 and ends at 5:00 p.m. Yet, seasoned traders know that there is an unofficial concept of Forex market hours. Eastern Standard Time.īecause the Forex market operates in multiple time zones, it can be accessed at any time. By the time traders in Tokyo go home after work, banks are not even open in New York, which operates during forex market hours est - from 8 a.m.
Nonetheless, the foreign exchange market is an international market that stretches from major financial centers like Sydney and Tokyo in the East to all the way to San Francisco in the West - all located in vastly different time zones. However, being a decentralized market, the Forex market has no rigid trading hours. Anyone who traded equities (stocks) or any other commodities knows that stock exchanges or other markets are usually open during banking hours in a day. When you first came to know about the global currency market, you probably came in touch with marketing materials claiming that this market remains open 24 hours a day and seven days a week. That's why we talk about Forex market hours and Forex trading sessions - to describe where and when the different Forex trading sessions are open to trading. The FX market is open 24 hours a day from Monday (or Sunday) to Friday (or Saturday) - as one part of the world goes to sleep, another wakes up. Forex Market Hours Based Strategy No# 3: Intraday Trading During Second Half of London Session.Forex Market Hours Based Strategy No# 2: Breakout Trading at London Opening Hours.Forex Market Hours Based Strategy No# 1: Trading Price Gaps During Market Open on Monday.The Choice of Your Forex Market Hours Depends on Your Strategy.Why Some of the Forex Trading Hours are More Active Than Others.Why You Should Trade During Certain Forex Trading Hours.Understanding Relationship Between Currency Pairs, Trading Volume, and Time Zones.Understanding the Impact of Forex Market Hours in Your Trading Strategy