Currency Market Timing 2021 - Comparebrokers.co
Currency Market Timing for 2021
Currency Market Timing Guide
Currency Market Timing
What's the one major difference between the currency market and other financial markets of the world? The difference is the timing!
For example, the US stock market may only be open for a limited time during the day. The same is true for other stock markets which usually stay open from 9 A.M. to 5 P.M. However, the currency market (FX) is known for its 24 hours operation. For 24 hours a day and five days of the week, the currency market stays open - The same cannot be said about the stock or any other market.
So how is it possible for the currency market to stay open through the day and night (24 hours)? The secret lies in the decentralised nature of this market. There is no fixed centre of this market - In fact, many different parts of the world are known as the solid financial centres for the currency market. Since the timezone is different in each market, the FX market can stay open even if it is closed in one country.
Through the overlap of different markets, the Forex market (currency market) can stay open for five trading days without interruption. Of course, there can be periods of low and high volatility in the currency markets, depending on how many trading zones are open at any given time.
Since the currency market is spread worldwide, how does this whole system work? The system is connected through various banks, liquidity providers, and other stakeholders through a network called the ECN.
In these modern times, there is an ever-growing need for currency since it is the only acceptable and widely used medium of exchange. From trade to banks and even local transactions - people need to use fiat currencies. It is this need for fiat currencies that can drive the value of the currencies higher and lower.
One country may be using the GMT 00 timezone while the other country may have the GMT+3 timezone. Since the FX market operates in almost all countries, the currency market overlaps between different economic centres and countries. This overlap between centres allows traders to stay connected and continue for 24 hours a day.
Through this exchange of currencies between different parties, one fiat currency may gain or lose its value against the other. If people sold the USD (US dollars) and bought other currencies such as the Euro (EUR), Canadian dollar (CAD), then the value of USD can drop against the CAD, EURO, and other fiat currencies.
Depending on the timezone and trading centre, the change in a currency value may be tiny or extreme. Generally, once the London market is open, high volatility returns to the currency market. The same can be said about the US market, which provides extra liquidity and volatility to the USD (US dollar).
Another reason for the currency market to operate for an extended time is the need for currencies. We all need currencies throughout the day and night to carry out transactions; it is this need that requires a market to stay open for 24 hours.
On the other hand, the commodity market doesn't need to stay open for 24 hours since there is not enough demand. The same goes for the other markets, including the stock exchange.
If you are wondering why the stock market doesn't stay open for 24 hours a day despite high demand, it is due to the centralised nature of the stock market. For example, the New York Stock Exchange(NYSE) is located in New York and thus, has limited time of operations. If the NYSE was also present in other countries, the US market could stay open 24 hours a day.
The trading day in the currency market starts with two important sessions: TOKYO and SYDNEY. Later on, the London session starts and brings most of the liquidity along with it. A few hours later, the US market starts, and for some time the two markets (the US & London) overlap with each other. During this time, the volatility is usually the highest compared to the rest of the trading day.
Why Currencies Move During Weekends
This is a phenomenon that can confuse a newcomer. Normally, the currency market is closed on Saturdays and Sundays. So why do the currency pairs experience fluctuations during these two days? Well, the need for currencies does not just disappear on these two days. People continue to perform transactions using fiat currencies. This need is not just limited to the people, though. Banks, governments, businesses, and various other parties continue to use fiat currencies.
That is why the traders witness a positive or negative change in the currency pairs during the weekends. Sometimes, a big news event might happen during the weekend, which forces the people to sell or buy their currency holdings. As a result, a big gap appears on the trading charts.
We've collected thousands of datapoints and written a guide to help you find the best Currency Market Timing for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best Currency Market Investment Platforms below.
Reputable Currency Market Timing Checklist
Currency Market Timing for 2021 Review by Andrew Blumer last updated on December 07, 2021
Currency Market Timing Table of Contents
Currency Market Timing Explained
6 Factors to Consider when Choosing Currency Market Timing
Are Your Currency Market Timing Trusted And Established?
Are The Currency Market Timing World Leading?
What are the Currency Market Timing Commissions and Fees?
What are the Currency Market Timing Funding and Withdrawl Methods?
Find Currency Market Timing with Round-the-clock support?
Make sure the Currency Market Timing Offer Comprehensive Trader resources?
Why Currency Market Timing needs to be regulated?
Currency Market Timing FAQ
Related Currency Market Timing Reviews
Related Currency Market Timing Alternatives
Related Currency Market Timing Comparisons
Trading the financial markets with Currency Market Timing when conditions are volatile can be difficult, even for experienced traders.
Apart from the educational and other resources made available online, another important factor for traders to consider when looking for Currency Market Timing is the platform that a Currency Market Timing offer.
Choose Currency Market Timing that's at the forefront of innovation and generally considered an industry-leader.
To gain access to the financial markets, you'll need Currency Market Timing that you can rely on.
Look for a broker that has a good track record/longevity in the market so that your strategy is your primary concern for navigating the markets. The top rated Currency Market Timing broker is eToro. Established in 2007, and in operation for 14 years eToro have a head office in Cyprus, UK.
Another good choice when looking for Currency Market Timing is XTB . XTB Segregates clients funds and offers over 4000 instruments.
The best rated Currency Market Timing broker eToro offers competitive offers for Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency, Index Based Funds, Exchange Traded Funds (ETF). eToro minimum deposit is 50.
Another top rated Currency Market Timing broker XTB offers Forex, CFDs, Cryptocurrency. XTB minimum deposit is 0. Please note that any cryptocurrency availability with any broker is subject to regulation.
What are the Currency Market Timing Funding and Withdrawal Methods?
When dealing with Currency Market Timing having convenient funding and withdrawl facilities makes the trading process and your trading experience smoother.
Customer service is very important when dealing with Currency Market Timing.
Currency Market Timing customer support can include Phone answering services, Live chat support and Email customer service support.
A regulated Currency Market Timing broker lowers your risk.
Currency Market Timing brokers are regulated to stop fraud. The agent's working capital and clients funded account have to be separated. This amounts to fraud if client money is used to conduct the business. Regulation is required to make sure this does not happen.
Currency Market Timing List
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If you feel some of the above Currency Market Timing are not quiet what you are looking for or perhaps you would just like to see some alternatives. See our highly rated list of Currency Market Timing alternatives below.
You can read some of our Currency Market Timing comparisons. We compare side by side some of our top rated Currency Market Timing. Read some Currency Market Timing VS pages below.