Forex market advantages
Unlike many other markets, the Forex market is the only open 24 hours a day from Sunday 5:00 PM to Friday at 5:00 PM and starts in Sydney before moving to Tokyo, London and finally New York , where it ends the day.
The precise times are as follows:
– Sydney: 21-06 (22-07 summer),
– Tokyo: 23-08,
– London: 08-17 (07-16 summer),
– New York; 13-22 (12-21 summer).
While the daily trading volume for the various sessions is roughly as follows:
– The London session with 36% of daily forex volume,
– the New York session with 18% of the volume,
– the Tokyo session, with 12% of the volume.
When it is recommended to trade?
The most crowded session is to London and the days where there is more movement are those that go from Monday to Thursday while for the moments of the most crowded day it is those that take place during the overlap of two sessions.
When it is not recommended to trade?
It is advisable not to trade on Sundays, especially in the last stage on Friday and during the holidays because these are the times when there is less liquidity, and lower benefits for investors. However, this does not mean that you can not make profits in these times, but it is clear that in most recommended times there are more opportunities.
In the Forex exchange especially the ‘majors’, namely the major currencies which are as follows:
USD United States Dollar;
EUR, members of the Euro zone, Eur;
JPY, Japan, Yen;
GBP, United Kingdom, Pound;
CHF, Swiss Franc;
CAD Canadian Dollar;
AUD Australian Dollar;
NZD, New Zealand Dollar.
The currency symbols are always composed of three letters. The first two letters identify the name of the country while the last letter identifies the name of the currency of that country. We see for example the initials USD: US is going to the US, D stands for dollar, the US currency.
The three major currencies
The US dollar is the reference currency of the world, as is well known. Besides the fact that most currencies are quoted in dollars, it must be said that many currencies of other nations are still connected to it, and many nations have stockpiles of dollars.
The euro was created in 1999 and replaced the national currencies of the European nations, such as the Italian lira.
The Japanese yen is the second most traded currency in the world; Also in this case, the yen is held by many countries as a currency reserve.
A survey by the Wall Street Journal in Europe has found that over 70% of the volume of trade is covered by Deutsche Bank, which means that 17% of the total currency transactions are followed by UBS, City Group, HSBC, Barclays, Merrill Lynch, JP Morgan Chase, Goldman Sachs, ABN Amro and Morgan Stanley.
Finally, it is good to keep in mind that the reference time is GMT.