As anyone who has worked in the world of forex in the past will know all too well, becoming a foreign exchange trader is not always a straightforward experience. And it’s different to other forms of trading, too. One of the ways in which it’s different is when it comes to timings. While some trading environments allow you to trade on standard daytime terms, the complex nature of communications in the forex world doesn’t necessarily offer the same luxury. This blog post will explore this question.
24/5 – with no closure
One of the main reasons why forex traders have more pressure on them in terms of time is that the forex market doesn’t close overnight during the week. That is in contrast to most global stock markets, which tend to close at a specific time roughly coterminous with business hours – meaning that many traders in the stock market can accurately know when there won’t be action.
Global status and time zones
But there are other inherent reasons foreign exchange traders have differently scheduled days compared to their counterparts in, for example, the stock trading world. It’s not a rule, but stock traders generally tend to trade stock in markets that are proximate to them. A British trader, for example, may tend towards British stocks given that they can access information about them in the local language and at a time of day when they are likely to be working. Forex, however, is traded in pairs – meaning there is a higher chance of dealing with a currency in a country that is in a different time zone!
Striking the balance
But there are some ways to avoid the pitfalls of time when it comes to trading forex. One is to research using a reputable site like ForexTraders to find the best times to trade forex; the answer will likely vary depending on which forex pair or pairs you trade. Another possible way is to use some of the many available tools that allow you to manage your portfolio even if you’re not at your desk. For example, an order tool like a stop loss will enable you to set your trading software to cash out if it reaches a certain loss level.
In short, it’s the case that foreign exchange traders need to plan their days with care in order to make sure that they can stay on top of the time demands of their trading. While it’s definitely possible to mitigate some
of the problems that time causes for forex traders through the use of tools, it’s also the case that there will inevitably be some challenges – and potential late nights or early mornings. Those who are under the impression that forex trading is a get-rich-quick scheme are likely to be disappointed.
