When involved in forex trading there is one important aspect to consider when taking the next step: choosing the right time and right place (Redwood Options) to do this. Currency market is fluctuating very often and for this reason you must pay attention at the timing when trading your preferred currency pairs.
It is essential to keep in mind that this market is open 24 hours per day from Monday to Friday and becomes very active especially with opening and closing hours of the banks from around the world. Also you need to remember that Australia and Japan markets are open at particular times. This is why you have to check with the opportunities that are offered to you.
Foreign exchange market is a volatile market, a feature that determines traders to understand that it can differ with many major markets. In order to detect the most profitable period, it is sometimes a matter that makes traders to confront with some issues here.
Let's take a look at the available timings for forex traders:
* The hours between 12:00 and 15:00 GMT are seen by many traders as the most active hours wherein traders can benefit of the maximum currency volatility. As such, you should know that New York markets open at 12:00 GMT while London closes at 15:00. During these hours traders are aware of the greatest liquidity that exists for the currency market.
Given the fact that these two markets count as the most important centers, financially speaking, many traders will take them as their benchmarks. But the opening and closing of markets across USA and England are also worth considering.
* Other criteria of choosing the time for forex trading may be your own strategies and trading style, in addition to your trading platform. If you are undecided regarding your platform as yet, be sure to read our Redwood Option Review, as they are highly reliable. Are you a day trader? In this case, the period between 12 and 15 hours may be your best timing for trading. There are as well plenty of speculative traders who will prefer this period along with short-term traders while taking advantage of the various economic events that take place on daily basis. Are you more of a 'swing' trader type?
At this point you may want to be more into trading as soon as London market closes, at 15:00 hours. But if you are the trader type who has developed his strategy on weekly or monthly basis then timing for you may not be that relevant into your trading endeavor.
Now as you can see, there are various circumstances according to trade binary options in which time may be or not important to the traders. Depending on your style of trading and your strategies, you should be able to choose the time that suits your style the most.