The most apparent difference between the foreign exchange and other trading markets is the continuity in time and the unconstrained nature of space!
In other words, the foreign exchange market is a 24-hour non-stop market. The significant fluctuations and trading hours are from New Zealand on Monday to work in Chicago on Friday. There are also a small number of foreign exchange transactions in the Middle East on weekends, but they are negligible as regular inter-bank exchanges, not ordinary speculation. So, to sum up, the foreign exchange market is a continuous trading market that does not stop.
It’s a well-known thing that you can trade in a market, but it doesn’t mean that you can change. Every trading period in the foreign exchange market has its own rules and characteristics 24 hours a day, so we only need to understand. According to his law, adopting corresponding strategies at the appropriate time can significantly increase the success rate of transactions and, at the same time, avoid transaction risks.
Opening and closing time of major international foreign exchange markets (Beijing time):
New Zealand's Wellington foreign exchange market:
04:00-12:00 (winter time); 05:00-13:00 (daylight saving time).
Australia's Sydney foreign exchange market:
06:00-14:00 (winter time); 07:00-15:00 (daylight saving time).
Tokyo foreign exchange market in Japan:
08:00-14:30 (winter time); 08:00-14:30 (daylight saving time)
Forex market in Frankfurt, Germany:
15:00-22:00 (daylight saving time); 16:00-23:00 (winter time).
London foreign exchange market:
16:30-23:30 (daylight saving time); 17:30-00:30 (winter time).
New York foreign exchange market:
20:00-03:00 (daylight saving time); 21:00-04:00 (winter time)
Foreign exchange transactions
Suppose Beijing time is used as the standard, every morning, starting from Wellington in New Zealand until the closing of the US West Coast market in the early morning. In that case, the major markets in Australia, Asia, and North America are connected end to end. At any time of the business day, traders can find a suitable foreign exchange market for trading.
The world's foreign exchange trading markets are separated by distance and time, and they are independent of each other and affect each other. These foreign exchange markets are centered on the city where they are located and radiate other surrounding countries and regions. Due to the different time zones, foreign exchange markets open and close one after another during business hours, but after one call ends, it often sets the tone for opening the next call. These markets are integrated through advanced communication equipment and computer networks, and market participants can trade worldwide, thus forming an international foreign exchange market that is globally integrated and operates around the clock.
Although the foreign exchange market is trading 24 hours a day, there are still specific skills in the choice of trading hours. The following are some experiences during trading hours.
London market: London is the world's veteran financial center. Banks of various countries are used to opening large transactions in the London foreign exchange market. Therefore, the global foreign exchange market-day volatility will begin to intensify with its opening, and the opportunities for individual investors during this period will gradually increase. Factors such as the European Central Bank's interest rate decision, Germany's IFO prosperity index, euro area country GDP, and euro area country consumer price index will also play a role in fueling the flames.
New York Market: As the US stock market is the world's largest capital flow center, the New York foreign exchange market is also the world's most active foreign exchange market. Its high level of activity means that investors will increase profit opportunities. In the New York foreign exchange market, a series of fundamental data such as US GDP data, interest rate changes, production price index, consumer price index, unemployment rate, and public statements by the Federal Reserve will have a significant impact at this time.
Tokyo market: The Tokyo foreign exchange market is Asia's largest foreign exchange market, but it is the smallest of the three major foreign exchange markets. During the trading hours of the Tokyo foreign exchange market, only the yen is more likely to fluctuate. Therefore, speculators who are accustomed to trading in the yen often start trading at this time.
Primetime: Compared to Beijing time, 20:30-24:00 (daylight saving time) is the overlapping trading time between the London market in the United Kingdom and the New York market in the United States. It is a dense area for foreign exchange transactions by banks in various countries, and it is also the time with the most block transactions. The market fluctuates most frequently. The more frequent the foreign exchange market volatility means that speculators have more opportunities to make money.
Generally speaking, local currencies will be more active during the trading hours of the local market. For example, when the Asian market opened, the Australian dollar and Japanese yen were relatively active; when the European market opened, the euro, British pound, and Swiss franc were moderately active; when the American market opened, the US dollar and Canadian dollar were pretty busy.
In addition, it should be noted that as long as there is no foreign exchange in the foreign exchange trading area, it is an over-the-counter transaction, and there is no concept of opening and closing. The regular work and rest time of local people shall prevail. The peak of general transactions will occur between 9:00-17:00 on average local working days because local people are accustomed to handling work during this time.