Maria asks…
During what hours is FOREX open? Are there off-hours trading?
Very good info. I still need to the times. Closes about 5pm EST Friday… Opens…. 5pm Sunday? …but I thought I remembered someone saying 24/6… still, I def remember people saying their services are avail 24/5…
it’s 5pm EST and they just went back online. There’s my answer – they’re down from 5mp EST Friday to 5pm EST Sunday. omg I’ll have weekends in my new career… when i get there…
kenspong answers:
Forex market is open 24 hours a day. It provides a great opportunity for traders to trade any time of the day or at night. However, although it seems to be not very important at the beginning, the right time to trade is one of the most crucial points to be successful in trading at the forex market.
So, when should one consider trading and why?
The best time to trade is when the market is the most active and therefore has the biggest volume of trades. More active currency moves will create a good chance to catch the trade and make some profit. A calm, slow market is literally wasting of time — turn off your computer and don’t even bother!
Forex trading hours, trading time:
New York opens 8:00 am to 5:00 pm EST
Tokyo opens 7:00 pm to 4:00 am EST
Sydney opens 5:00 pm to 2:00 am EST
London opens 3:00 am to 12:00 am EST
And so, there are hours when two sessions are overlapped:
New York and London — 8:00 am — 12:00 am EST
Sydney / Tokyo — 7:00 pm — 2:00 am EST
London /Tokyo — 3:00 am — 4:00am EST
For example, trading EUR/USD, USD/GPB currency pairs would give good results between 8:00 am and 12:00 am EST when two markets for those currencies are active.
At those overlapping trading hours you’ll find the highest volume of trades and therefore more chances to win in the foreign currency exchange market.
Betty asks…
Is there someone who can help me give me the information to always win in forex trading in 1 hour?
kenspong answers:
Nobody can always win….
The inability to accept this is actually the very reason that most fail.
John asks…
How similar is the real forex trading to the virtual practice ones?
I was just fooling around with the practice forex for a couple of hours today and made around $5k profit.
kenspong answers:
The simulations frequently do not match real world conditions.
Quoting from a federal government website:
“Real-time is not real: when marketing trading systems, some promoters claim that their systems have performed successfully in “Real-time Trading.” This means only that the system has been tested using a live data-feed, rather than being tested using historical market data.
Remember though that in real-time trading, no trades have actually been placed in the market. Performance results based on real-time trading are merely another form of hypothetical results, with the same limitations. “
Donna asks…
Is there any software to automate my FOREX trading?
I have been making some money on the FOREX markets. I don’t like being tied to my computer at odd hours. Do you recommend any software to automate my trades?
kenspong answers:
There are a couple I have come across, but the most reliable I have found is the one listed below. It is a great FOREX tool.
Http://www.FOREXStrategyRobot.com
Mary asks…
Is/are there many cross currency pairs more volatile than the majors in forex trading?
It seems that USD based currency pairs have the lowest spread. However, I am living on the other half of the earth (12 hours ahead/behind New York), and I am new to such forex trading
kenspong answers:
It’s not entirely about location, since most financial markets are already integrated across the globe. USD based currency pairs have the lowest spread because the USD dollar remains the primary currency of trade across the planet/ among countries. The US remains the dominant economy in the world and so most other currencies are pegged to the USD, although the Euro and Japanese Yen also stand as major currencies. With that being said, volatility/spreads are lower/tighter because of the liquidity and activity of currency traders.
Let’s shift our attention to a common household item like soap (as if it were the USD). If there are a lot of buyers and sellers of this item, then the price and quantity movements would be shifting all the time at minuscule fluctuations. No one trader (buyer/seller) can effectively influence the price level of the soap because if he sold too high, another trader will simply come in and sell it a lower price (albeit at a fractional discount). This also applies to a buyer, if he quotes a price for a soap another guy may step in and offer to buy that soap at a higher price (albeit only at a fractional premium). Since everyone uses (demand) and sells (supply) soap, you can be sure someone will always be there to handle the soap, therefore higher liquidity, lower volatility, smaller spreads.
Rarely traded currency pairs are usually volatile and have bigger spreads simply because their liquidity is low. Let us again use a substitute item, bird cage. Although soaps are frequently seen in most if not all households, a bird cage is not. This means that not everyone is interested in buying or selling a bird cage. The very fact that a currency is infrequently used in market trade, also means that there is no point in handling too much of it. Sellers of a currency can try to offset the risk of not being able to sell it as easily as more popular currencies by demanding wider spreads. They can’t be sure that they will be making a sale in the next minute or so, but they know that in the next hour, the wait will be worth it (kind of like selling furniture).
Just keep demand and supply in mind. I hope this simplifies the concept!
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