Do you know when each of the global market centers throughout the world opens and closes? Prepare yourself for increased volatility during the day.
One of the most important aspects on which we should focus during our trading is when do we trade. Most brokers offer the possibility to trade 24 hours a day 5 days a week. Some brokers may even offer weekend trading, but that is usually limited to certain underlying assets. However, during regular trading/business days (Mon-Fri), we must be aware of opening and closing of different global market centers at different times, which represents a huge change in the number of currently trading people. But what exactly does it mean for the traders and what impact does it have on the market?
Because of these changes, there is a significant fluctuation in the value of assets (market volatility). The biggest changes are taking place just prior to the opening of a trading centre and then just after its opening. During this period of time, it is better to avoid trading for a while, because despite using a solid strategy, the volatile can be still too high for you to successfully trade. (The most critical are approximately the first 15 minutes before opening an exchange centre and 30 minutes after opening). The first stock exchange centre, which opens is Sydney, after 2 hours Tokyo joins the party, followed by London and New York.
|Opening/Closing||GMT + 1 (London)|
|New York opening||13:00|
|New York closing||21:00|
As you can see, on business days we can very often get into a situation when there are more trading centers opened at the same time, and of course, we can use that to our advantage in trading. But watch out for broker’s time that you trade with, because they will most probability have different time (because they operate in a different time zone).