If you are new to forex trading you may be unaware of the magnitude of trades that occur in a trading day. Foreign exchange Melbourne gives you the whole picture of what it is like to trade globally. Large institutions and governments are involved in many of the movements of forex trading. Whether a bank in Singapore has a concentrated global trade in mind or a hedge fund in the United States needs to follow currencies you will know if you understand what it means to trade around the world. Learn when the opening day of the trading week begins and what it means for you as a trader.
Foreign Exchange Melbourne Opening Remarks
Decentralisation is a word you should know the definition of if you intend on trading in the forex market. The stock market is a centralised market because of the regulation system. Foreign exchange Melbourne is regulated by the ASIC. Foreign Exchange in the U.S. is regulated by the Commodity Futures Trading Commission or CFTC. Each country has someone in their country creating the regulations the forex market will follow. It opens up different opportunities because any financial centre in the world can potentially have their own foreign exchange market.
It also places the hours of operation in a type of “limbo” since your trading day can be different than someone else’s in another country. It also makes the opening of the trading week a bit ambiguous. It is generally decided that Wellington, New Zealand is the opening of the trading week. If you are up on your time zones, you know it is two hours later in New Zealand than in your foreign exchange Melbourne market. Japan opens an hour after you, and then the rest of the world starts to wake up a few hours to several hours after Australia’s open. New York is the financial centre for the North American market. When it closes at 5pm on Friday then that is the close of the forex trading week. You could trade during those late or early morning hours in Australia such as before you go to work. You can also come home after the Melbourne market is closed and still find a place like Europe’s session to trade in.
Trading Gaps for Foreign Exchange Melbourne
The structure of the market makes it very easy to trade currency pairs at your convenience. It also sets the market up for a near 24 hour trading day almost six days a week. When your market in Australia is closed, other markets are still open. Into your Saturday, albeit in the wee hours of the day, the New York market is open.
Despite all of this there are some warnings for foreign exchange Melbourne to keep in mind. First, there is a gap risk on the weekend when New York closes and before Monday for you begins. Forex news also does not stop on the weekends, so the Monday market could be affected by Friday New York close and any events that happened during the week. You should be aware of the risks of holding a trade during the weekend.