Best Hours To Trade Forex – Many believe that the cryptocurrency market is the first market open 24 hours a day. This is not true at all. The international forex market has been open 24/7 for decades. Does this mean that Indian forex market hours are active all day, every day? Read on to find out.
The Forex market is diverse. There are central banks, hedge funds, and even tourists. What you are concerned about is the forex trading market, which is a subset of the broader forex market.
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Indian Forex Trading Market – Participants can buy and sell exchange-traded currency derivatives. It consists of exchanges, brokers and participants such as banks, corporations and retailers like you.
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Currency pairs that can be traded include INR as a quote or do not include INR at all. This distinction is important because forex timings are different for both currency pairs.
That said, there is considerable overlap in market hours for trading both types of currency. Here is a detailed explanation of forex market hours for INR pairs and cross currency pairs.
During these trading hours, forex traders in India can buy futures on four currency pairs: USD-INR, EUR-INR, GBP-INR and JPY-INR. These pairs are usually abbreviated as FCY-INR, where FCY represents the foreign currency.
The FCY-INR pair trading market will open at 9.00 am, three and a half hours after Japan and two and a half hours after the start of the forex markets of Australia, Hong Kong and Singapore.
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This is important because overlapping markets are known to affect the liquidity and volatility of certain currency pairs, especially if it is a widely traded quote or base like the JPY.
While Indian forex market closes at 17.00 for INR pairs, European forex markets are relatively higher, especially Germany and UK. This is known to affect GBP-INR and EUR-INR pairs.
You can trade futures for three cross currency pairs: EUR-USD, GBP-USD and USD-JPY. As you can see, these forex trading pairs have two foreign currencies as base and quote. They all show US dollars.
Hence, forex market hours for these cross-currency pairs are relatively different from INR pairs. You will notice that they are two hours longer and correspond to the US, UK and German forex market hours.
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Now that you more or less understand the trading hours of Indian currency, it will be helpful for you to know about trading holidays for exchanges like MSE, NSE and BSE.
The Forex market is closed on public and national holidays. In fact, there are 19 holidays in 2023 when the forex market is closed. Here is a complete list of shopping and clearing holidays.
Fun fact: In 2023, there are 6 public holidays that fall on the weekend. That is why they are not listed.
The Forex market is unique in that it is open anywhere in the world at any time. For example, a forex trader in New Zealand starts his day at 3.30 IST; The US forex trader ends his day at 2.30 IST.
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Since the North American market is open after midnight IST, forex trading technically operates 6 days a week in terms of IST. But there is a catch. Not every currency pair is liquid 24/7.
There is a logical reason for this. Each country has a national currency (INR), while others use a common currency (e.g. EUR).
Additionally, volatility in the international forex market is known to be high when trading sessions between regions and countries overlap.
So, it is not difficult to say that one can start forex trading at any time of the day. After all, many forex time matches. But let’s face it, it’s not always the best time to trade Forex.
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The forex market in India is open from 9.00 am to 5.00 pm and trading can continue till 7.30 pm, also for cross currency pairs. However, liquidity and volatility are not always the same in Indian forex market hours.
They vary with recurring trading sessions around the world. We have touched on this issue before. The rationale is that a currency pair may experience more or less trading activity based on two factors.
The first one is internal regarding the country’s trading hours. For example, a currency pair with the US dollar as its quote or base may have high liquidity during US currency trading hours.
Experts also suggest that the best time to trade forex may be when several trading sessions around the world are active, overlapping and creating a surge in trading activity.
Foreign Exchange Market
Forex trading hours in India are 9.00 am to 7.30 pm. INR currency pairs can be traded till 5.00 pm and some cross currency pairs till 7.30 pm. The forex market in India will be closed for 19 days in 2023.
While the forex market can be a way to build wealth, it is known to be relatively risky for retail traders due to the global nature of the market and the presence of large players who can price out smaller players.
The forex trading market in India opens at 9.00 am (IST), which means that forex trading can be done from that time onwards.
The forex trading market in India closes at 5 PM (IST) for most currency pairs. Market closing time for certain cross currency pairs is 19.30 (IST).
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The New York forex session opens at 5.30 am IST and closes at 2.30 am IST. Certain trading hours of the cross-currency pair in India overlap with the US market by more than one hour.
The forex session in London starts at 11.30 am IST and ends at 8.30 pm IST. There is considerable overlap between the London session and the Indian session.
Disclaimer: This should not be construed as investment advice. Trading and investing in the stock market involves risk. Do your own due diligence or consult with a trained financial professional before investing. They follow various economic calendars and eagerly trade on each data release, viewing the 24/7 currency market as a convenient way to trade throughout the day. Not only does this strategy quickly deplete a trader’s reserves, it can burn out even the most determined trader. Unlike Wall Street, which operates during normal business hours, the forex market operates during normal business hours in four different locations around the world and in their respective time zones, meaning trading continues day and night.
But what is the alternative to sleeping through the night? If traders are able to understand market timing and set appropriate targets, they have a strong chance of profiting on the chart.
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New York (open 8:00 a.m. to 5:00 p.m.) is the most closely watched currency in the world by foreign investors, as the US dollar accounts for 90% of all transactions, according to Foreign Exchange Day Trading (2006). the second largest forex platform. ) Kathy Lien. Actions on the New York Stock Exchange (NYSE) can have an immediate and powerful impact on the dollar. When companies merge and acquisitions are completed, the dollar can gain or lose value immediately.
Tokyo, Japan (open from 7:00 p.m. to 4:00 a.m.) is the first Asian mall to open, surpassing Hong Kong and Singapore for the largest share of Asian trade. The currency pairs that usually see a fair amount of activity are USD/JPY (or US Dollar to Japanese Yen), GBP/USD (British Pound to US Dollar) and GBP/JPY (British Pound to Japanese Yen). USD/JPY is a very good pair to watch when the Tokyo market is open alone due to the strong influence of the Bank of Japan (BoJ) on the market.
The trading day officially begins in Sydney, Australia (open from 5:00 p.m. to 2:00 a.m.). Although it is the smallest of the mega-markets, it sees a lot of early action when markets reopen on Sunday afternoon as individual traders and financial institutions try to regroup after a long break on Friday afternoon.
London, UK (open 3am to noon): The United Kingdom (UK) dominates the currency markets worldwide and London is a major component. According to the BIS report, London, the central trading capital of the world, accounts for approximately 43% of global trade. As the UK’s central bank, the Bank of England, which sets interest rates and controls the GBP’s monetary policy, is headquartered in London, the city is also heavily influenced by currency fluctuations. Forex trends often appear in London, which is something to keep in mind for technical traders. Technical trading involves analysis to identify opportunities using statistical trends, momentum and price action.
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Forex trading is unique in terms of working hours. The week starts at 17:00. EST on Sunday and is open until 5 p.m. On Friday.
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