At the end of 70-ies of the previous century after cancellation of fixed rates system of national currencies against US dollar formation of foreign exchange market FOREX has begun (Foreign Exchange operations – operations on exchange of currencies on the basis of supply and demand). Up to date FOREX has become a global integrated market unified by communication network, which opens on Monday morning in New Zeeland and closes on Friday evening in the USA. Depending on time zone and appearance on FOREX market of different regional participants, daily trade on FOREX market is divided into several trade sessions. In the table given below the main regional sessions on FOREX market are marked.
Working hours of FOREX market (twenty-four-hour)
American and Asian sessions are the most aggressive, and the biggest volume of operations goes to the European session. New Zeeland and Australian sessions are considered as the quietest.
Money is the goods of this market (the goods with 100% liquidity) – the goods which at any time has its buyers and sellers. Twenty-four-hour access to the foreign exchange markets of Asia, Europe and America allows a trader (a person managing capitals on financial markets) to make deals at the most vantage price; and assignment of bank credit with a shoulder 1:100 by his/her contractor allows a trader to receive gross profits with relatively small deposit (own funds) during a short period of time. At that the simplicity of closing deals (via telephone or Internet) makes this market attractive for business people.
Unlike other markets Forex is characterized by big bidding volume, minimum price of transacted deals and the most rapid currency drive. Liquidity of this market has increased up to several billions a day. At present time operations on Forex market are the main source for many leading banks and other financial institutes of the world.
However, it shouldn’t be forgotten that all the operations held on Forex market are highly risky. Operations on any market (goods, stock, and foreign exchange markets ets.) always are connected with certain risk – any business always has its risky component. The goal of any businessman is to bring risks, possible losses, to minimum. This goal is overactual for a trader on Forex market. In opinion of most of financial market professionals “Making progress on Forex market is harder than became a champion in some kind of sports. The hardest thing according to their opinion is to get used to the fact that you work with money of other people and risk to lose them. Some people quit this job only because they cannot stand pressing feeling of risk. Of course, work of trader is not for weak people. If you have made up your mind to this job in any way you should take into account that everything written in this course has been checked by years of practice and brought traders considerable income. However, you should remember that there is no panacea from all the disasters. Only hard work, daily analysis of state of main world-wide currencies market with involvement of additional analysis methods based in the first place on study of state of global economies, main stock indices and cross-rates of chosen currencies form your way to success.
Reminder: Do not forget about time zone differences.
At present 76 countries use in one or another variant Daylight Saving Time (10 of them use it but not in all the regions) and 128 countries do no use it . In northern hemisphere DST is used in the USA, Canada, European countries, throughout the territory of Russia. In southern hemisphere DST is used in Australia, New Zeeland, Paraguay, Brazil, Argentina, and Chile. Subequatorial countries do not use DST. Japan, China, Singapore, Uzbekistan, Tajikistan, Turkmenistan, Georgia, Kazakhstan have refused to bring in DST.
Switch over to DST in Russia and Europe comes into effect on the last Sunday of March at 2 a.m. by setting watch 1 hour forward, back switch over is executed on last Sunday of October by setting watch 1 hour backward.
