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Forex Market Opening And Closing Time In India

11 Sep 2023

Many people think that the cryptocurrency market has been the first to be open 24 hours each day. However, that is not precisely correct. For decades, the worldwide FX market has been functioning 24 hours a day, seven days a week. Continue reading to find out the forex market opening and closing time.

Forex Market Trading Times in India

The FX market is extremely diversified. It involves central banks, hedge funds, and sometimes even tourists in some shape or another. You are interested in the currency trading market, which is a subset of the larger FX market.

The currency trading marketplace in India is a venue where people may purchase and sell marketplace currency derivatives. It comprises exchanges, brokers, and participants like businesses, banks, and individual traders such as yourself.

You may trade currency pairings that either contain INR as the quotation or do not include INR at all. This distinction is significant since the forex market timings in India today for both kinds of currency pairings vary.

However, the market hours for trading any currency type overlap significantly. The forex market opening and closing time in India for INR pairings and cross-currency pairs are explained in detail below.

Indian Rupee Currency Trading Hours

Forex traders in India can purchase and trade futures for four currency pairs during these trading hours: GBP-INR, EUR-INR, USD-INR, and JPY-INR. FCY-INR is a popular abbreviation for these combinations, where FCY stands for foreign currency.

  • Opening Time: 9:00 a.m.
  • Closing Time: 5.00 p.m.

The exchange begins for forex market opening time in India at 9.00 a.m., three and one-half hours following Japan's as well as two and a half hours after the currency markets in Hong Kong, Australia, and Singapore open.

This is significant since overlapping marketplaces are known to influence the liquidity and volatility of some currency pairings, particularly if the quotation or base is frequently traded, such as the JPY.

By the moment the Indian forex market shuts at 5.00 p.m. for INR pairings, there is a significant overlap with the European currency markets, particularly Germany and the United Kingdom. This is known to have an impact on the GBP-INR as well as EUR-INR currency pairs.

Cross-Currency Trading Hours 

Futures contracts are available for three cross-currency combinations: EUR-USD, GBP-USD, and USD-JPY. As the name implies, these forex trading pairings use two different currencies as the baseline and quotation. Hence, USD is present in all of them.

As a result, the forex market hours for certain cross-currency pairings vary from those for INR pairs. For example, they are two hours longer as well as overlap with the currency market hours of the United Kingdom, the United States, and Germany.

  • Opening Time: 9:00 a.m.
  • Closing Time: 7.30 p.m.

Although currency market duration for cross-currency pairings is longer, liquidity could not always be optimum. Now that you have a general understanding of India's currency market hours, you will benefit from learning about trading holidays on markets such as the NSE, MSE, and BSE.

Why is the Forex Market Considered to be Open 24 Hours a Day?

The forex market is unusual in that it is always open anywhere in the globe at any given moment. A currency trader in New Zealand, for instance, begins their day at 3.30 a.m. IST and closes their day at 2.30 a.m. IST. Because the North American market opens after midnight in IST, currency trading theoretically takes place six days a week. However, there is a catch. Not all currency pairs are liquid 24 hours a day.

This has a rational explanation. Every nation has its own currency, whereas others utilise a global currency (like the EUR). Traders from that nation or area are more likely to employ their own currency in large quantities during forex market times.

Moreover, when trading sessions across regions and nations overlap, volatility in the worldwide currency market is understood to be high. As a result, it's not a leap to assume that at any given time of day, somebody somewhere will begin trading currencies. After all, many FX times are the same. However, it is important to recognize that not all times are ideal for trading forex.

When is the Best Time to Trade Forex in India?

The forex market opening time in India is from 9.00 a.m. to 5.00 p.m., with cross-currency trade continuing till 7.30 p.m. However, liquidity and variability are not always consistent over India's currency market hours.

They differ due to overlapping trade sessions all around the globe. This has already been mentioned. The argument is that depending on two criteria, a currency pair may see more or less trading activity.

The first is connected to a country's business hours. For example, a currency pair using USD as the quotation or base currency may have considerable liquidity during US currency trading sessions. Experts also believe that the forex market timings India today are when many trading sessions are active worldwide, causing a surge in trading activity.

Wrapping Up

Currency trading hours in India are from 9.00 a.m. to 7.30 p.m. Currency pairings in INR may be traded until 5.00 p.m., whereas cross-currency pairings can be exchanged until 7.30 p.m. In 2023, the Indian forex market will be inactive for 19 days.

Whereas the currency market may provide opportunities for wealth creation, it is also recognized to be dangerous for retail traders due to the global structure of the industry and the presence of large players who really can price out smaller competitors.


Related Articles: What Are Cross Currency Pairs And What Do They Mean? | How does a Spread Contract Help in Currency Trading | How Currency Fluctuations Impact your Financial Plan 


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