Forex 24 Hour Trading Learn About Trading at CAPEX.com

The world is divided up into time zones, so when it’s night-time here, somewhere else in the world people are waking up – it’s exactly the same for global currency markets. Australia and New Zealand Forex markets are the first to open, with the focus switching towards Asia, followed by Europe, moving to the US before starting again in Australasia.

How is it different from the stock market?

Unlike the stock market, Forex trading isn’t constrained by the usual limited operating hours of exchanges. Forex trading is done on an OTC, or over-the-counter basis. That means that although one part of the world may be ending its official business hours, another is always operating, apart from a global closure during weekends. Not all trading periods are equal though, with the London and New York sessions being considered particularly attractive, especially during times when they overlap.

Here at CAPEX we believe Forex trading should be accessible to everyone.  So we give you all the knowledge and information you need to start trading, including a demo trading platform that gives you a completely risk-free trading experience.

Forex 24 hour trading may be possible, but it’s neither desirable nor necessary. There are certainly huge volumes of currencies being traded, with estimates of around one and a half-trillion dollars being traded every single day, although this figure can reach as high as five trillion dollars in a single 24 hour period.

But it would be a mistake to suppose that there’s an equal chance of making a profit at any time of day. That’s because not all hours are equal when it comes to Forex trading. The markets go through quiet and busy periods, tending to peak around the time when the London markets open. Another exceptionally busy time is during the afternoon in the UK, when the New York market opens.

The 24 hour Forex trading market

Thanks to the various time zones involved, there are clear times when each region is operational. The Forex trading day starts in the UK at 10pm GMT as the Sydney market opens. At midnight the Tokyo market goes online, followed at 8am by the London market, and finally, at 1pm GMT the New York market goes live.

Aim for periods of high liquidity

The Forex 24 hour trading day may be constantly accessible, apart from weekends, but that doesn’t mean that you should consider trading at any time. That’s because there are times when the market is more liquid than others, making a trade more likely to result in a positive outcome.

You’ll need to factor in national holidays, for example, when a specific currency may be more dormant than usual, thanks to the temporary closure of banks and other financial institutions. As already stated, the overlap between London and New York sessions can often be a period of high liquidity.

Learning the most suitable times to participate in Forex trading is something that doesn’t happen overnight, so be prepared to do your research. Although thanks to CAPEX you won’t have far to go to get your hands on some incredibly useful resources! Just check out our online trading school to see the full extent of our information base. We’ve got free webinars, an online dictionary and plenty of how-to guides and articles to make your Forex trading journey even easier.

Factors influencing Forex Trading

Important political developments

Tax changes

Consumer & producer preferences – CPI or PPI reports

Interest Rate Decisions - Bank of England MPC Announcements, Fed Interest rate Decisions, etc.

Other market-related FX news

Visit our Special Articles page for the latest market news on cryptos, stocks, indices, and more!

Most people break into Forex 24 hour trading in the hope of making some healthy returns. While it’s true to say that there are certainly profits to be made, these can’t be relied upon. Simply choosing a currency pair at random and hoping for the best isn’t going to lead to successful outcomes, at least over the long term, so it’s essential to know what you’re doing from the outset.

A good starting point is our Forex guide, which introduces you to the basics. From there you can learn about the different types of currencies, including major and minor pairs, discovering the potential benefits and risks attached to each pairing.

It’s well worth taking the time to explore Forex trading on a demo platform to begin with, so you can familiarise yourself with every aspect of the trading process. Here at CAPEX we do more than just offering a demo trading platform – we also offer video tutorials and exclusive webinars, so you can learn while you trade.

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