Imagine going to the drug store to get your child's medicine. You get there and the door is locked. You look at the hours and find that it closed thirty minutes ago. If it's an emergency, this could be a dire situation. This crisis could have been avoided if you knew the hours ahead of time. If you understand forex market business hours worldwide, you can avoid a similar crisis when it comes to your trades. When it comes to forex capital markets, it might be difficult to believe that they, too, have business hours. It is true, however. Each market around the world has specific hours based on local time. Knowing these hours can help you as a forex trader.
How can knowing forex market hours help you? The most obvious answer is that you cannot trade when the exchange is closed. Beyond that, though, there are strategies you can use if you know the hours of the world markets. If you know that Tokyo is open, this might be a good time to consider your position in the Japanese Yen, for example. Although each market has specific hours, time keeps marching across the globe. Master those hours and you have mastered time.
You can use forex market hours as an advantage when trading. If, for example, you know London is opening and you hold some positions in British Pounds, you might consider how they are doing against other currencies you are trading. You might be able to make a trade as soon as other markets open and take advantage of a favorable opening rate. If nothing else, knowing the hours means that you can easily keep track of your currencies worldwide. In order to find out the hours, you just need to go online to get a listing. You might even look up specific markets. It is a good idea to keep the hours listed along with records of the currencies you hold. It is also important to convert times so that you know what your local time is when it is 9:00 am in Tokyo.
It is important to remember that there are many markets around the world. When one is open, another might be closed. If you fail to realize a market has opened and your currency is trading poorly, or if you miss the closing bell and cannot take advantage of a favorable rate, your trades will suffer. Once you know forex trading market hours around the world, you will be able to take advantage of your positions in all markets without missing a beat!