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The currency trading is decentralized and takes place entirely over the counter instead. Among the active traders particularly valued advantages is the continuous trade: Due to the global time differences currencies can be traded continuously from Sunday evening to Friday night. On Sunday evening, European time trading begins in the Far East, where then already Monday has begun. The trade ends late Friday European time on the West Coast. That aside to Forex trading hours of the break during the weekend play no role brings a decisive advantage: deleted The risk of always possible in exchange trading opening gaps during the week.
The most important things about the Forex market opening times:
- The forex market is the world’s largest and most liquid market
- In currency trading, there is no specific market opening times
- Forex trading takes place off-exchange
- The Trading with currency pairs is possible throughout from Sunday evening to Friday evening
1.) What advantages and disadvantages are found when trading forex?
In the forex market is the largest and most liquid market in the world, to be implemented on the day several trillion dollars. The trading currency pairs brings distinct advantages for investors and but is not without risks. Among the advantages is the fact that the currency trading has lots of trading opportunities arising from the high liquidity. Furthermore must be made no high stakes in forex trading and can due to the leverage effect with small amounts positions are moved about an far higher. For finding out which broker which minimum stakes vorraussetzt our recommends forex broker comparison . This very high profits can be realized in a short time. Other advantages the presence of numerous expert analysis and market views heard at least for the major currency pairs, on which traders can orient. The foreign exchange market exerts on many investors a fascination. Now we come to the risks of currency trading. The leverage effect on the one hand to be responsible for large profits and, on the other side can also arise very high losses and also within a very short time. So positions should always be protected by a stop loss and the trader protects the own Kapitalvor freefall.
Conclusion: When trading Forex there are numerous benefits but there are also risks. The benefits include the continuous forex trading hours, numerous trade opportunities and the prospect of high profits, which are at least in theory unlimited. However, not only the potential gains large, the losses can be very high.
2.) The Forex Trading Hours
Make no mistake: Even though the Forex market opening times nominally not exist should traders do not trade any currency pair at any time. In at least one of the currency areas concerned should be just at the time of trades day. Night paralyze economic activity and thus the volume of the foreign exchange market. Broker-wide in these hours, spreads often clear from — that is especially true for exotic currency pairs. However, the widening of spreads is not so great that existing stop marks are triggered overnight only in. The absence of opening gaps during the week is almost necessary condition for the great leverage that in forex trading are used.
On the financing costs they however have no effect: the leveraged portion of each position will earn interest and charged interest rates depending on the broker daily or 1 to 2 appointments per week. The amount of the financing costs is based on the traded currency pair, the direction of the position (the currency in which the loan is taken and in which it is applied?) And the surcharge or discount broker at the market rate. The terms of the financing are specified in the contract specifications of the broker.
Conclusion: Although the forex trading is not subject to the opening times of a stock exchange, it is not possible to trade each currency pair at any time. So at least one of the currency area should be currently trading day, so the currency pair is available. In currency trading, due to the continuous forex accounts trading hours costs which may for example arise in CFD trading.