Forex Basics: When to Trade Forex on Margin

I believe that friends who have done foreign exchange trading or heard about related introductions will know that the advantage of foreign exchange trading is that it can be traded 24 hours a day, unlike stocks that only open for 4 hours a day. So why can foreign exchange trading be done 24 hours a day? This is the topic we are going to discuss today.

Foreign exchange trading is a global financial market, and every transaction you make is likely to be against people from various countries. Since it is a globalized financial market, the issue of "time difference" has to be considered; therefore, the foreign exchange market is mainly divided into three parts: the Asian market, the European market, and the American market, thus forming a 24-hour continuous operation of foreign exchange market. Therefore, it can also be guaranteed that when anything that affects foreign exchange fluctuations occurs, it can be traded as soon as possible. You can choose any time, morning, noon, evening, or even a long night, foreign exchange can accompany you through it.

Although the foreign exchange market is open 24 hours a day, it does not mean that the market is active all the time. It is mainly divided into four stages: London session, New York session, Tokyo session, Singapore session (some say Sydney session). The picture below is a more detailed time chart. The time here corresponds to our Beijing time. It can be seen that in 24 hours a day, various foreign exchange markets open one after another, and the trading hours overlap each other.

Under normal circumstances, the Asian trading market in the morning is relatively light. After the opening of the London market at 3 pm, the market is relatively active. With the opening of the New York market at 8 pm, that is, the morning trading of the New York market and the local afternoon trading in London. Market (20:00-24:00 Beijing time), this is the most active time period in the foreign exchange market. Because the largest amount of funds participates in this time period, the trading volume will also be the largest. Almost all traders in the world will trade at this time.

In the first two chapters, I mentioned that "the foreign exchange market is the best gift", now let's talk about it. You can imagine that if you are British or American, if you want to participate in transactions during this most active time period, then you must conduct transactions during working hours, which will not only delay work, but may also be blocked Company penalties. But for us Chinese, after 8 o'clock in the evening, it happens that we have already got off work and had dinner. At this time, we happen to be free to conduct transactions without delaying anything.

Because there is no time difference between Japan and China, the Japanese have already discovered this fact. Everyone knows that in Japan, many housewives are doing foreign exchange margin trading. ​Because the interest rate in Japan is negative, you will not only get no interest when you deposit your money in the bank, but will also charge a part of the interest, so this also makes those Japanese housewives who have "fiscal power" eager to invest in the foreign exchange market or financial management. It is understood that almost 90% of people in Japan are investing in foreign exchange, so we should catch up.

The closing time of each trading day is about 21:00 Greenwich Mean Time (GMT), which corresponds to about 5:00 am Beijing time. Therefore, the weekly foreign exchange market starts with the opening of Wellington on Monday and ends with the closing of New York on Friday. Weekends and statutory holidays are generally the closing stage. At this time, we can turn off the computer, do some outdoor sports, and enjoy Our holiday leisure time.

Another point is that foreign exchange margin trading itself has no handling fees, clearing fees, exchange fees, etc. Most traders get paid for their services through spreads. We will explain this part tomorrow. That's all for today, thank you for your patience in reading, thank you!

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