Trading is considered to be 24 hours 5 days a week. It starts from 23.00 (EST) Sunday and closes at 24.00 (EST) Friday (trading server time). The time zone in forex trading is referenced in terms of Eastern Standard Time (EST).
Currency trading involves global exchange of currencies all around the world. When forex trading stops in one part of the globe, it opens in another part.
Here trading time does not follow the same time as is the case in other trading markets like the stocks and commodities. If one part of the world goes to sleep, the other part awakens.
When forex trading activity closes with the onset of darkness in one part of the world, it starts in other places with the onset of daylight. Thus, when there is night in Tokyo and Fx trading stops, it is daylight in London and forex activity starts. When London moves towards closure, trading in New York comes to life.
Along with the closing and opening of different forex markets at different times, volume of forex trading also changes. There is a brief lull in trading at certain times while other times are quite brisk.
Major centers of forex market are Wellington, New Zealand, Sydney, Tokyo, Hong Kong, Singapore, Moscow, Frankfort, London and New York. For time zones, we mostly concentrate on Japan, London and New York.
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