《Best Times to Trade the Forex Market》.pdf

BEST TIMES TO TRADE THE FOREX MARKET The forex market is the largest financial market in the world, trading around $3.1 trillion each day. (Every three years, the Bank of International Settlements (BIS) surveys major Forex market participants and then creates a volume estimate based on the information gathered.) The most recent BIS survey completed in 2007 yielded the estimated volume figure as $3.1 trillion. (This figure represents an increase in volume of about 70% from the 2004 survey.) The market is open 24 hours a day from 5pm EST on Sunday until 4pm EST Friday. This makes the spot FX market unique to any other market in the world, as trading is available 24-hours a day. Some interesting facts on the average daily volume of the forex market. According to the BIS, the $3.2 trillion average daily volume is equivalent to: • More than 10 times the average daily turnover of global equity markets. Note: The average daily turnover of global equity markets is about $280 billion (Source: World Federation of Exchanges aggregate 2006) • More than 35 times the average daily turnover of the New York Stock Exchange. Note: The average daily turnover of the New York Stock Exchange is about $87 billion (Source: World Federation of Exchanges aggregate 2006) • More than 10 times the world GDP. Note: The World GDP is about $48 trillion (Source: World Bank) Trading Zones Somewhere around the world, a financial center is open for business, where banks and other institutions exchange currencies, every hour of the day and night with generally only minor gaps on the weekend. Essentially foreign exchange markets follow the sun around the world, giving traders the flexibility of determining their trading day. The forex market can be split into three main regions: Australasia, Europe and North America. Within each of these main areas there are several major financial centers. For example, Europe is comprise