The Forex/CFDs market is the ‘biggest’ financial market, with daily trading of around $1.5 trillion. The currency market is open 24 hours a day, five days a week. This is feasible due to the fact that forex trading is not limited to one region and depends on the numerous markets across the world. So, if a person wishes to trade forex after the market hours of the location in which he or she is located, he or she must choose a market in another region whose trading hours are still open.
Forex Brokers in South Africa
Dissecting “Forex Market Hours”
The phrase “Forex Market Hours” refers to the time period during which a participant (trader) can open and close a position , exchange and speculate on the price movement of currency pairings. Banks, investment management firms, commercial firms, hedge funds, and forex brokers and investors are all part of the international currency markets. As a result, currency trading hours are built around the times when countries participate. However, there are time zone overlaps between two or more regions. For this reason, 4 significant Forex trading sessions have been settled upon.
Because many countries follow daylight savings time, the Forex trading hours may fluctuate slightly in April and October (DST). Aside from these big Forex trading sessions, the market opens and closes according to local business hours. For example, trading hours in South Africa may change slightly from those in London, but there will be a significant variance in forex trading hours when compared to those in Tokyo.
As shown in the Forex trading sessions, there is a trading hour overlap between two zones every time their shift begins and finishes. In the Forex trading market, these are typically the busiest hours of the day.
Forex Market Hours in Johannesburg, South Africa
The traders of South Africa can trade currency pairs during any one of the major Forex trading sessions.
According to market analysts, the Forex trading market in South Africa provides greater opportunities to traders or investors when the Forex market is more ‘active’ in Johannesburg, that is, when considerable quantities of trades are offered for trade in the market. Participants trade currency pairs in accordance with local time. Traders make more money in actively traded markets, thus they should not waste time in slow and quiet markets.
In Johannesburg, the currency derivatives market is open 24 hours a day.
Even though the Forex market (when the four trading sessions are combined) is open throughout the day, South African traders should use caution while trading, exchanging currency pairs, or speculating on the price movement of a specific pair. Traders use various trading charts, technical indicators, and other tools to determine which trading techniques to employ. It is critical to have a consistent trading strategy that will generate greater earnings and allow the trader to keep the profits.
The Forex market is not restricted to a specific geographical area. It is Foreign Exchange because it involves the currencies of more than one countries. During the big trading periods, anyone from any region can invest in the Forex market. However, participating prudently during the busiest Forex trading periods will improve profits because the Forex market will be more volatile at that time due to increased trade volume and clashes between buyers and sellers. If a South African Forex trader is interested in trading EUR and GBP pairs, he or she should consider trading the currency pairs during the London Forex trading session. South African traders should trade EUR/USD, GBP/USD, and USD/CHF from 8 a.m. to 12 p.m. (EST), as this is when the London and New York Forex trading sessions are active. The examples in the preceding two statements about when is the optimum time to trade which currency pair demonstrate that selecting a currency pair to trade is also reliant on the Forex trading session.
South African forex traders
South African forex traders should also be aware of the other forex trading hours. For example, when big government reports or economic news are released. This is due to the fact that the Forex trading market is also reliant on fundamental analysis.
However, the timetables published by the various governments may not be in sync. It is also crucial to understand the various economic indicators from other countries, as this can help when trading a specific currency pair at a specific Forex Market Hour.
Forex Market Hour
Another explanation is that the released indications frequently coincide with very active periods in the forex trading market. Increased activity always translates to increased trading volume for currency pairs, which translates to bigger profit chances. As a result, the trader must either select the currency pair and then determine which Forex Market Hour it is most active in, or else select the trading session first and then select the currency pairs that are most active in that session. Another consideration is the release of various financial and political news that may influence the price movement of a currency pair.