Forex 24 Hours: Description of Major Currency Exchanges Operation
Forex trading is held non-stop 24 hours a day. A trader cannot constantly monitor all market movements and react quickly to market changes. Currency players need to work out an effective strategy for the game to trade successfully. It is important to accurately calculate the moment when the market will be at its peak of activity. This allows a novice trader to maximize his ability to account for trading signals for binary options during the working day. Choosing the right time point to enter the game is an opportunity to place your capital more efficiently.
The main bursts of activity in the Forex market are observed during the opening and closing hours of the three major world exchanges:
London Stock Exchange;
New York Stock Exchange.
The activity of professional traders also increases during the hours of coincidence of trading sessions on the main world financial markets. The opening time of the Tokyo exchange is considered to be the unofficial start of the daily "cycle" of the world currency capital. The Asian session is interesting for traders who do not mind taking a chance to play the currency pair with the Japanese yen. Wide range of quotes allows counting on large profits in short trading, but also increases the chances of financial losses.
In the period when the hours of trading on the Asian and European exchanges coincide, there is a decline in activity of large players. Forex trading is extremely sluggish. This is a time when traders take time out to rest and prepare for breakthroughs in the European or American market. A huge number of players and daily high trading volumes make the European market one of the most dynamic in the world. London acts as a connecting link between New York and Tokyo. International banks are reviewing and finalizing their currency portfolios. Major investors are converting European assets into dollars. Currency players are preparing for the opening of the Forex market in America.
More than 80% of all stock speculators of the world live in the USA. New York's Forex market is the second most important in the world. When the opening hours of the American and European dealing centers coincide, then the period of the most active trades in the world market begins. The bulk of financial transactions on the New York Stock Exchange falls on the period from 8 a.m. to noon local time, then everything subsides and resumes for the next day with the opening of electronic platforms of the Asian region.
Trading on Forex can be very profitable, but also risky. A beginner trader should review his game strategy as often as possible in accordance with rapidly changing market conditions. High volatility of world currency rates can negate the entire investment strategy of a financial player. Therefore, it is often justified for beginner traders to repeat the steps of experienced traders, because they will not work at a loss. They provide free signals for binary options in order to convince the trader of the quality of their services and to agree on cooperation on favorable terms.