Forex 101
This article is about Forex trading. Specifically, forex trading hours. Many people have heard about the 24 hour nature of the markets, but it’s not what you probably think. It’s not some huge NASDAQ type platform where all the currencies are traded 24-hours a day.
If you plan on making money in the Forex market, you need to understand the structure of the market. It’s a good idea to get a good grasp on the basics such as when markets open and close, and the best time trade the markets.
The first thing you need to know is the nature of the markets. Like I said before, there isn’t one big Forex market. There are actually many different markets that all open and close at various times around the globe.
The second thing that you want to know is which are the major markets you want to pay attention to and trade in. This will increase your money making opportunities and it will allow you to focus on fewer strategies to make money in the markets.
The third thing is understanding the best time to trade the major markets. Here’s a quick checklist of the best market matches and times below:
New York / London – 8:00 am – 12:00 noon EST
Sydney / Tokyo – 7:00 pm – 2:00 am EST
London / Tokyo – 3:00 am to 4:00 am EST
These basic match-ups generally have the highest level of activities during those specific hours. And the key to making money is to have plenty of trading opportunities that take advantage of various undervalued currencies.
These are the foundational things you should understand about the nature of the Forex markets before you open a test account. Once you have a better grasp on the basic operating procedures of the markets, it’s a good idea to start developing your forex trading strategy to make money consistently.
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