We already know about Forex and Forex market. And you probably heard that you can do forex trading 24 hours a day.
Today you are going to get the answers to some of the frequently asked questions: How does the forex market is open 24 hours a day? Can you trade forex 24 hours a day? Does forex trade 24/7?
How The Forex Market is Open 24 Hours a Day:
We already aware of the fact, that the Forex market is the largest economic market in the world. And it has a daily transaction volume of over 5 trillion dollars. We are also aware that every participatory country has their self-defined trading hours.
Generally, the opening time falls between 8am-9am local time and the closing time is 4pm-5pm local time. The most interesting thing is that the Forex trading is an OTC trading and the controls (or regulations) are decentralized.
Although most of the countries are involved in Forex trading, broadly the Forex trading hours are divided into four major zones. These zones are Australian zone (Sydney session), Asian Zone (Tokyo Session), European Zone (London Session), and North American Zone (New York Session). [Suggested: Forex Trading Session Timings.]
Every Zone has its own opening & closing hours. But as the whole world doesn’t sleep at the same time, when one session closes another session opens.
The day starts with the opening of Sydney Session and went till the close of the New York Session. But at the time when New York session is about to close, the Sydney session starts again. This circle continues in a loop, and so does the Forex Market remains open 24 hours a day, giving you an opportunity to do forex trading 24 hours a day. (But you should never do it!)
Is The Forex Market Open 24/7?
This is a very common question "is forex open 24/7 or not?. Although we tell that Forex market is open for 24 hours a day, it is NOT a 24/7 open market for retail traders. The actual operational time for retail forex trade is 24/5 (i.e.- five days per week).
The opening time of global forex retail trade market is Every Sunday 10 PM GMT with the open of Sydney Session & the closing time is Friday 10 PM GMT with the closing of New York Session.
So now you came to know that forex doesn't trade 24/7, the retail forex trade is open for 24/5 on weekly basis.
[Suggested: Best Time for Profitable Forex Trading.]
Can You Trade Forex 24 Hours a Day?
Theoretically, it is possible, but practically you can't do forex trading 24 hours a day (also not advised!). Even though the forex market is open 24 hours a day, it does not mean that you need to trade every single hour.
You also need time to rest. And moreover, not all the hours are suitable for trading.
Another factor is associated with your Forex broker you have chosen. If the broker is only registered with the market regulator of one zone, then they can provide the trading window as per the trading hours of that zone only.
So it is very important that you choose your broker wisely and verify if they are registered with market regulators of multiple zones.
Though you can't do forex trading 24 hours a day, you can pick your own time frame for forex trading as the market remains open 24 hours.
[Suggested: How to Choose Your Forex Broker?]
Who Are The Most Famous Market Regulators?
As you now know that before choosing a broker you must know which regulators they are registered to. Because this has an impact on the trading window a broker can offer.
Hence, We are listing some of the famous global forex regulators who offer 24 hours trading facility. Check with your broker, which of these regulators they are registered to:
- ASIC - Australian Securities and Investments Commission - Australia
- FSA - Financial Services Agency - Japan, Asia
- MAS - Monetary Authority of Singapore - Singapore, Asia
- FSB – Financial Services Board - South Africa, Africa
- FCA - Financial Conduct Authority - UK, Europe
- CySEC - Cyprus Securities and Exchange Commission - Cyprus, Europe
- MiFID - Markets in Financial Instruments Directive - EU
- IFSC - International Financial Services Commission - Belize, Central America
- FIRA - Financial Industry Regulatory Authority - USA
We hope that you have enjoyed the above article and got the answer of your question related to trading forex in 24 hours market. Be with us to explore forex trading, stocks trading, and other money-making opportunities.
Leave us some comments if you have any questions about this 24 hours open market. Also, let us know what is your favorite time for trading.