Best Time To Trade Forex in Australia
- Written by News Co Media
Currency trading has gained a lot of momentum in Australia in the past few years. Australian Dollar has also made great progress in the past few years. If you look at some of the top Forex brokers in the world, then you can find many Australian brokers on the list. The Forex market itself has grown at an astounding rate. It is further expected to make excellent progress in the upcoming years to come. The total net worth of the Forex market is even more than the largest stock exchange in the world.
The Forex market has also created a great opportunity for large numbers of investors. Investors in the Forex market can take advantage of price movements in various currency pairs. There are many clear reasons for the growing popularity of currency trading in Australia. The Forex market is a highly traded financial market in the world. Its huge net worth is one of the reasons why people choose to invest in the Forex market. Additionally, the Forex market provides you with much more flexibility. It is better compared to any other financial market in the world.
There is almost no regulation to be Forex market. Moreover, because the market is 24 hours open and there are no minimum capital requirements. Thanks to the 24 hours availability of the Forex market, people can also invest in it on a part-time basis. Hence, this makes the Forex market a great place for people in Australia with regular jobs to take a position. Apart from that, the Forex market is one of the best financial markets in the world in terms of liquidity.
High liquidity in a financial market makes it a great option for short-term trading with low risk. Another exceptional advantage of investing in the foreign exchange market is the low transaction cost associated with it. Since there are not many regulations in the foreign exchange market, the traders enjoy a much lower transaction cost. Low Capital requirement and transaction cost along with high leverage makes the foreign exchange market an excellent investment option for beginners.
Time Zones and the Best time to Invest in Forex From Australia
In Australia, the market is open 24/7 for 5 days a week. Trading hours in Australia overlap three different time zones in the world. Hence, it is essential to understand all these different time zones. These three-time zones are:
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Asian time zones that include Japan and Australia
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European time zone (London)
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The USA (New York) time zone.
The Sydney market is open from 7:00 to 16:00 EST. Moreover, the Tokyo market is open from 9:00 to 18:00 EST. The London and the New York market are open from 17:00 to 1:00 EST and 22:00 to 6:00 EST, respectively. To be successful in the Forex market, we should not only focus on what to invest in but also on when to invest. Know that time zones that overlap with the trading hours in Australia are important. It is also important to keep an eye on the trading activity at different times of the day.
Moreover, it is also essential to keep an eye on the time zones for the currency you are trading in. In the Forex market, the first hour of the opening of a big market like the US and Europe is considered to be very crucial. This is because that the first hour is an indication of how the market will perform in the rest of its session. Many of the Forex platforms in the market provide charts to help you with understanding different trading sessions.
When there is an overlap in two or more trading zones, the liquidity is likely to go up during that time. This is because training activity increases for that period when two or different market hours overlap. News can also have a big impact on the value of the currency in a very short amount of time. Hence, you should also try to be updated with all the news related to the Forex market. The effect of the news on the value of the currency can be both negative and positive.
Staying updated with news also helps to take advantage of the price movements or stop any potential losses at the right time. Not only in the Forex market, staying updated with news helps to reduce the risk of losses in any financial market in the world. Not staying updated with the market can be a disastrous move. This is one of the common mistakes that newcomers can make while trading foreign currencies.
Almost all of the successful inventors in the financial market like to read as much as possible about the Forex market to stay updated with the news. This helps them to capture potential opportunities in the Forex and other financial markets. Hence, staying updated with all the news about the Forex market is another significant deciding factor. It helps an investor select the best time to trade in Australia.
The Takeaway
The Forex market is getting increasingly popular in Australia. Currency trading in Australia is gaining even more attention with impressive growth in the Forex market for the past few years. The Forex market is a great choice for investors due to its low transaction fees, decentralization, 24/7 availability, and much more flexibility as compared to other financial markets. It is also important to understand the time zones that overlap with the Australian trading hours. The time zone that you should be more attentive to should depend upon the currency pair you are trading in.
Three different time zones in the market overlap with Australian time zones. These time zones are Asian, US, and European time zones. For example, If you are trading in EUR/USD currency pair, then you should always be updated with what is happening in the US and European time zones. Another great factor that contributes to selecting the best timing to invest in the Forex market is the news.
Staying updated with all the news related to the Forex market can help you take advantage of opportunities in the Forex market at the right time. Risks in the Forex market cannot be eliminated, but they can certainly be reduced if one stays updated with news.
