Forex Requirements and Market Hours

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There are several requirements for Forex trading. You don’t need things that cost you too much. But you should several fundamental requirements. They are;

1.       A computer with high speed internet connection

Don’t start with a dial-up internet connections, because you should see the currents rates not the past rates. Your platform should synchronize the data with live market. If you late for few minutes, you may lose everything you have made.  This can happen frequently during busy hours.

2.       A Forex broker

The broker provides you the opportunity to access in to the Forex market through their platform. You should download it for free. Then you have to deposit in to your account and then start trading. But be careful to select a Forex broker. Always read their policies carefully. Other thing is first try with demo account, if you feel it is difficult to handle, go for another broker.
  
3.       Some money to invest

Since most of the brokers are providing mini and micro accounts, now you can start Forex trading with 50$ in some platforms.

4.       Good Knowledge on Forex trading

Not theoretical but you should have good particle and general knowledge on Forex trading. My advice is not to trade in Forex until you make 80% of your trade profitable in demo accounts. And don’t trade until you finish this lesson series.

5.       Place to sit

Otherwise you will feel back pain, because sometimes you have to be in front of your monitor for several hours.

Other minor requirements will be discussed under each topic. Now move in to next part, that is market hours.




The main centres of Forex market are located in New York, Sydney, Tokyo and London. These markets run in different times. Because of this the market hours get overlapped with each other. It makes Forex market to remain as a 24 hour market. So you can trade at any time when you are free. But there are recognized hours with high volatility to trade in Forex more effectively.

Following table will show you the market hours of different markets;

Market
Open/Close
EDT
GMT
Sydney
Open
6:00 PM
10:00 PM
Close
3:00 AM
7:00 AM
London
Open
3:00 AM
7:00 AM
Close
12:00 PM
4:00 PM
Tokyo
Open
7:00 PM
11:00 PM
Close
4:00 AM
8:00 AM
New York
Open
8:00 AM
12:00 PM
Close
5:00 PM
9:00 PM

Now you can understand that in between each session, there is a period of time where two sessions are open at the same time (AT 3-4 EDT the London session and Tokyo session overlap). But these sessions are changed a bit during winter. However it is not that significant.

The overlapping hours are the busiest hours in Forex market. During these periods the exchange of currency is high. So these are the best times to trade in Forex as intraday traders.

I think now you got an idea about the requirements Forex trading and market hours in Forex.



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