FOREX TIME ZONE:
Every security exchange board has particular timings. Approximately every market opens when it is 09:00 am in their country. New York Stock Exchange (NYSE), London Stock Exchange (LSE) and Bombay Stock Exchange (BSE), so on. Every exchange board opens at 9 AM in their standard time zone but Foreign Exchange is not like exchange boards it is open all over the week except Saturday and Sunday.
Forex market starts when it is Monday, 9 AM in New Zealand and stops at Friday 5 PM in United States. So, it is open in every working day. According time zones the importance of trading depends. In general there are four important time zones where a market open and closes
1. Pacific Zone, includes New Zealand and Australia
2. Asian Zone, includes Japan, China, India, Russia and Arab countries
3. European Zone, includes all European counties, United Kingdom zone, includes London
4. United States Zone includes all states of US.
In time zone some countries play vital role than the other for example Japan is the only country in Asian zone given importance in FX market. So, if we consider only important countries that influences the market the list will be like this and the list is in
GREENWHICH MEDAIN TIME
GREENWHICH MEDAIN TIME
1. Australian, Sydney market opens at 09:00 PM and closes at 05:00 AM
2. Japan, Tokyo market opens at 11:00 PM and closes at 07:00 AM
3. Germany Frankfurt market opens at 06:00 AM and closes at 02:00 PM
4. Great Britain, London market opens at 07:00 AM and closes at 03:00 PM
5. United States, New York market opens at 12:00 PM and closes at 08:00 PM
The starting time of every market shifts 1 hour ahead when the Day light saving starts.
Now for a trader the time zones are very important because one cannot sit all day before a system/laptop for trading forex. So, trader should select his time zone for trading. The most important of all the time zones is London-New York overlap. Most of the traders focus on that time and it is between 12:00 PM to 03:00 PM.
Asian time zone is less volatile compared to others zone, after the Japan market European market starts then the volatility of the market increases, when European market completes the morning session then New York market opens here the junction of London and New York zones the volatility reaches to peaks. Big players, Banks, Investors, Scalpers, Intra-day traders everyone keeps an eye on this overlap.
Why the forex market runs 24hours, because when Japan market starts and then Australia ends, Europe starts Japan ends, New York starts Europe market ends and New Zealand starts New York market Ends.