The Virtues of the Forex Market Begins

In the previous article we outlined some of the virtues of the market compared to the stock market fx. In this article we explore in detail some of them: FX market is open 24 hours a day, reduced transaction costs, and leverage personal gain in a market upward or downward.

The market is open 24 hours a day.

One of the main reasons why the forex market has become so popular is because investors can negotiate almost all day. Being open all day, gives you immediate access to the market and thus able to negotiate according to the political events and / or economic occurring around the world. This feature gives the investor the opportunity to choose the day or days you want to negotiate. It is no longer necessary to wait until the market opens, so if a significant event occurs the investor can react immediately. In the stock market would need to wait for the opening to take a position with the risk that the price has created a gap against the position held.

Additionally, many people who want to invest a full time job during the day. The possibility of trading for 24 hours is the most suitable for this investor. Throughout the day the market offers various opportunities for negotiation and that all markets are involved in this global market, from Asia to America. In the forex market, negotiate outside of work hours provides the same liquidity and spreads (the difference between the offer price and demand) that in normal hours.

The market opens on Sunday at 5:00 pm Eastern time to U.S. After the markets opens from Sydney, Australia, then Singapore and Hong Kong at 9:00 pm EST, followed by Frankfurt, 2:00 a.m. ET, and London, 3:00 am. At four o'clock the European market is fully open and close Asian markets. North American markets open at 8:00 a.m. on Monday, and European markets close at 11:00 a.m. ET. New York finally closed at 5:00 pm and the cycle begins again in Sydney.

The most active hours occurs when markets are open simultaneously, for example, Asia and Europe during the 2:00 a.m. and 4:00 a.m. ET, United States and Europe between 8:00 am and 11:00 am. During the time of crossing all the European and North American currencies are traded actively during the hours that most Asian currencies are traded are the GBP / JPY (British pound is the GBP), and AUD / JPY (AUD is the Australian dollar).