The Forex market operates 24 hours a day phenomenon. The cycle of continuous trade is facilitated by the different regions exchange markets spread around the world. This allows the flexibility to choose your trading hours for your convenience. However, to capitalize on the commercial potential of 24 hours, an operator must have knowledge of the best trading hours for large exchange markets.
Forex Markets: Why is it important to know the trading hours Best?
Timing is the most important factor in the forex market and determine your ability to profit taking. To develop an investment strategy, it is essential to understand the behavior of the market at different times of the day for a specific currency pair. There are two basic reasons why an operator needs to understand the impact of time on the foreign exchange market:
* Liquidity: The amount of cash available for a specific currency pair significantly differed during the different phases of a trading day.
* Currency range: The range of a currency depends on its geographical location and macroeconomic conditions. For your investments, you should know at what point during a trading day of a currency is the largest and most narrow range.
Equally important are the overlaps of market timing, especially duplication US-European and the U.S. in Asia. Overlap is the period when trading occurs in two markets simultaneously. We have seen that trade is at its maximum during the period when the market is open with another big market.