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Track the Forex Market which is open 24 Hours a Day

Many newcomers to the forex market jump right in. They monitor multiple economic calendars and trade aggressively on every data release, considering the 24x7 foreign currency market as a convenient way to trade throughout the day. This method has the potential to not only quickly deplete a trader's capital, but also to burn out even the most stubborn trader. Unlike Wall Street, which operates during regular business hours, the FX market operates throughout the regular business hours of four distinct sections of the globe and their corresponding time zones, allowing trading to take place at any time of day or night.

So, what are your options if you don't want to remain up all night? If traders can grasp the market hours and establish proper targets, they will have a much better chance of making money within a reasonable time frame.

Best Time to Trade Forex

Currency trading is distinct in that it is open 24 hours a day. The week starts on Sunday at 5 p.m. EST and ends on Friday at 5 p.m. EST. Not every hour of the day is ideal for trading. When the market is most active, it is the optimum moment to trade. There will be a heightened trading environment when more than one of the four markets is open at the same time, which implies there will be more dramatic movement in currency pairings.

Currency pairings tend to become trapped in a narrow pip spread of about 30 pips when only one market is active. When two markets open at the same time, movement may easily exceed 70 pips, especially when major news is revealed.

News Releases and the Forex Markets

While knowing the markets and how they overlap might help a trader plan his or her trading schedule, there is one factor that should not be overlooked: the news. A major news event has the ability to boost a typically quiet market session. Currency may lose or gain value in a matter of seconds when a big revelation about economic data is made, particularly if it contradicts the prediction.

In general, the more economic growth a country achieves, the more positively foreign investors see its economy. Investment money tends to migrate to nations with high development prospects and, as a result, attractive investment possibilities, resulting in the strengthening of the country's currency.

Furthermore, a nation with higher interest rates via its government bonds attracts investment capital as overseas investors seek high-yielding options. Stable economic development, on the other hand, is inextricably linked to attractive returns or interest rates.

Wrapping Up

When creating a trading plan, it's critical to take advantage of market overlaps and keep a careful watch on news releases. Traders who want to increase their earnings can try to trade at more turbulent times while keeping an eye on fresh economic data. Part-time and full-time traders may design a plan that provides them peace of mind, knowing that opportunities will not be lost if they take their eyes off the markets or require a few hours of sleep.

Related Articles: Similarities and Differences Between Crypto and Forex Online Trading | 6 Things to consider before trading in Forex | What Are Cross Currency Pairs And What Do They Mean


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