Timing In The Forex Market As if it wasn't complicated enough, Forex trading advertises 24/7 trading possibilities. Use the tipsbelow to consider how the 24/7 timing impacts Forex trading. Forex trading uses different time zones to determine the times that the financial markets in othercountries are open. Because of different time zones, the business day for these markets varies. Themost common markets will often be referred to in terms of major financial hubs like NY, Tokyo orLondon. Sometimes you will see time labeled as GMT, Greenwich Mean Time. Advertisers note that Forex trading is done 24/7 as a positive feature of Forex trading for tradersbecause there is some active market at all times of day. Since individuals are involved in currencytrades, having access to open markets around the world means that trading is going on somewhere.So unlike the stock market where trading stops at the end of the business day where you are,theoretically Forex trading might stop where you are but still be going on elsewhere. Theoretically isused here because there are times when Forex trading actually does seem to more or less stop,specifically on weekends. One way to understand the impact of time and the 24/7 concept of trading in Forex is that eachtransaction is a currency exchange, the "Ex" in Forex. The ability to place the trade means thatcurrencies are being converted by financial institutions. In order to have access to those trades thefinancial institutions have to be open. The exchange will likely be handled by financial institutions inthe country which has open markets at the time of day you make the trade. As with almost everything else in Forex, there are charts to help Forex investors use time zones todetermine the most active times of trading for specific time zones. These active trading times havegenerated a bulk of information and advice on their own concerning how to use time zones todetermine when you should make your trades. The overlap times are indicated for different time zones. Overlap refers to when more than onemarket is open at the same time. This information is used to determine times of day when there ismore volatility based on open markets and active trading going on in different regions.

Time zone information does not help assess the impact of news stories to which currencies aresusceptible. While knowing the times of days when market activity is most active is helpful to a Forextrader, if you are invested in particular currencies this information will not indicate breaking news thatmight heavily influence a particular currency's performance. Following the news for a region whereyou have money invested in the currency remains very important. Time zone converters are available for free on the Internet that can help investors determine the timezone in particular places. You should use more than one time converter to become familiar with thechoices available and which time converter works best for you. When you trade in currencies you will not want to be glued to the computer all day and all night butsince your investments will tend to be in specific currencies you can adjust your schedule to payattention to market activity during the market hours for countries that have different time zones. Time zone information is part of Forex trading because by its nature Forex deals in currencies from allover the world. Use the tips above to consider time zones in your Forex trading. Click here for more information