The work of the Forex market
The work of the Forex market does not stop for a second. Of course, except for Saturday and Sunday, when traders are not allowed to open position. Actually, the Forex is open 24/7. Let's take a look at all the nuances of the market Forex, linked with time (and not only).
The time frame of the Forex market
As you know, there are 3 foreign exchange trading session: Asian (00.00 to 09.00 for Moscow), European (09.00-16.00) and American (16.00-00.00). On the features of each of them, information about this, see the article "session of the Forex trading Forex works whether the time is right for you?"
Many traders think that Forex is not working at the weekend. This is not the case. After all, the currency exchange Forex OTC market, interbank, i.e. it is not tied to the banking institutions. The price of any tool is determined by the players and not dictated from above.
Quotes are on weekends, but are not all brokers. If you become a customer of, say, a European Bank, you will be able to observe the changes in price and during the weekend. These changes cause the gaps on Monday.
Does it make sense to evaluate Forex quotes at the weekend? Well, Yes and no. Yes, because getting more information, the trader more aware, and thus has an advantage over his peers. No, because "the price takes into account all", that is information missing. More important is the correct interpretation.
However, the fact of the Forex market at the weekend takes place and can be used by the trader to trade.
Advantages and disadvantages of Forex market 24 hours a day
Means that the trader can earn anywhere, because Forex is available 24/5. In fact, the trader has a time limit when trading. For example, the volatility of the pair EUR/USD or GBP/USD will be minimal during the Asian session. Gold is the best to trade during the American session. That is, the trader has to choose real time to trade.
If you trade long term holding the position open days, weeks, or months, you need to consider when looking into the Terminal, in anticipation of the possible fluctuation traded pairs. This group includes the fans KerriTrejd and hedgers.
How long the hold position? It all depends on your trading system. Remember, the StopLoss is designed to limit losses, but they need to correct. Too short stop can be disrupted by rolling the eznačitel′nym against you, and too long-unprofitable because of the small TakeProfit. What we are talking about? That leaves the position open and closing the Terminal, you have to define the size of the stop. Otherwise, you can say goodbye to half of the deposit in the event of sudden movement against you. Have opened to put stop loss. Without options.
The work of the Forex market and trading strategies
Many trading strategies (TS) are directly connected with trade. "Return to the indicator moving average." implies the opening on Monday night, immediately after the opening of the market. Adviser-night scalper uses the minimum fluctuation of Asian currencies (Japanese yen) to cut a couple of pips profit. Other advisers included in the other time, for example, 15 minutes during one trading session closed and opening another.
Before you decide on the VEHICLE, understand all about trading sessions. Understanding the essence of, you will be able to make informed, confident decisions that will help you get your profits. Without knowing the details, it's easy to mistake for movements, where they will not be.
Conclusions: spend a little of your time and get familiar with the Forex market. Then your traffic will get better and easier. And, above all, profitable. Success and remember that the profitability of trade is highly dependent on your chosen broker !
The concept of Forex transactions
MT4 and MT5-what to choose?