ADVANCED TRADING STRATEGIES
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Gain a deeper understanding of financial markets and your investing potential.
Automated Trading Systems Definitive Guide
Learn all about the advantages and disadvantages of Automated Trading Systems before you decide to use them.
Protect Yourself against Possible Fraud
This article will highlight vital tips that investors can use to protect themselves against possible fraud schemes.
How Are Stocks Valued?
Do you know how they come up with the value of stocks? Learn how companies and their stocks are valued.
Increasing Market Shares
How do companies increase their market shares and why do they do it?
How to Trade Inverse ETFs
Inverse ETFs are a type of Exchange-Traded Funds that are made by using certain derivatives.
Weird and Profitable Investments
There are many investments that investors can make, but these days there are some pretty strange investments that are very profitable. Learn more.
What is Alternative Investment?
How can alternative investments change the investing game? How is investing in tech and what is the outcome?
The Rule of 70
The rule of 70 is an estimate of the duration that a certain variable will take to double.
What is the Dividend Capture Strategy?
The dividend capture strategy is an investment tactic stemming from the fact that investors are entitled to receive a dividend from a company.
How to Trade Hedge Funds
Hedge Funds can provide you with a good investment when traded with care.
Invest in Bonds: Pros and Cons
Are you considering investing in bonds? Learn the pros and cons and how investing in bonds can help your portfolio.
What is the Credit Market and How Does it Work?
Learn how the credit market works and how you can invest in it.
What are Derivatives?
Derivatives are important tools to every investor. Learn how they can help you with online trading.
What is Supply and Demand?
How can Supply and Demand help you with trading? Learn what happens when the law of supply and demand is applied to the markets.
What is the Fibonacci Retracement Tool?
Learn about the Fibonacci Retracement tool and how to use it to your trading advantage.
How are Negative Interest Rates Imposed?
The Negative Interest Rate is an unconventional rate which is set by commercial Bankers, but how does this effect the trader?
Implications of Trump's Win on the Stock Market
What will happen now that Trump will be the next president of the United States? How will the stock market react?
The Impact of Rising Interest Rates
What does rising interest rates imply when it comes to forex and stock trading?
Change the Way You Invest
Learn about bad investment choices and how to overcome them.
What are Circuit Breakers in Trading?
Circuit Breakers are used to help ease the jitters of having an unstable market and can help investors with overall trading decisions.
Difference Between Swing and Day Trading
Learn the difference between day trading and swing trading and which one can benefit your trading style.
Here are Some Reasons to Invest in ETFs
ETFs provide information on mutual funds while noting the structural differences between them and mutual funds.
Trade the HKSE via ETFs
The Hong Kong Stock Exchange has been a popular stock to trade in the financial markets. Learn how to trade HKSE and stay information and ahead of the game in the Asian Markets.
Getting the Most from MT4 Signals
The MT4 signals feature offers traders many choices while at the same time making it simpler to make successful trades.
Making Use of Bollinger Band Indicators
Bollinger Bands is a useful indicator to identify periods of low volatility, marked by contraction in the bands and periods of high volatility marked by expansion of the bands.
MT4 Mobile Trading Mastery
Mobile trading is quickly catching up to the popularity of terminal trading, due to advances in technology and speed.
Identifying and Beating the Risks of Trading
For educated traders, risk is no more an obstacle than
Making the MT4 Work for You
The popular MT4 trading platform can be adjusted to suit the individual investor in many ways.
Fundamental analysis for the financial markets is the study of macroeconomics of the economies in question for the forex markets.
Hedging in the Financial Markets
Hedging can turn out to be a lot more risky if not properly approached and also requires a thorough understanding of how the various financial instruments move as well as inter-market relationships.
MT4 Scripts: An Introduction
Traders who are familiar with MT4 scripts can definitely vouch for the usefulness of this functionality that comes with the MT4 platform.
How to Use Fundamental Analysis to Prepare Trades
How to set up a trade using fundamental & technical analysis.
Reducing Trading Risk with Stop Losses
Learn Stop loss orders are an essential tool to limit risk on trades
Understanding RSI & Other Momentum Indicators
Learn momentum indicators form an important tool when analyzing prices in technical analysis
Fundamental Analysis – Key to Investing
Learn which macroeconomic indicators move the markets and how they affect currency pricing.
Technical Analysis – Charts, Trends & Prices
Learn about chart types and how trend indicators & price action work to predict prices.
How To Trade Futures
Learn how you can trade futures and make a profitable investment.
Is Slippage A Bad thing in FX Trading?
Learn about Slippage and how it can be both beneficial and not.
What is Leverage and How Can You Use It?
Learn about leverage and increase your buying power.
What are Stop Loss and Stop Limit Orders?
Stop Loss and Stop Limit Orders are directives whereby an investor instructs a broker to automatically trade a particular stock if its price drops to a certain level.
Swing Trading Strategies for Short-Term Traders
Swing Traders rely on the order of flow and technical analysis instead of fundamental analysis. Learn more about Swing Trading Strategies and if they are right for you.
How to Trade on the Crude Oil Markets
Alvexo introduces traders to the highly volatile oil market. As one of the most heavily traded commodities, oil is particularly important in global markets.
The Top 5 Economic Indicators
How To Gauge Market Sentiment and make informed trading decisions using economical indicators.
Support and Resistance; How Do Experts Use Them?
This article explains what are support and resistance levels, how to identify them and how to use them in a trading strategy.
Learn to Identify Market Trends
Learn about candlestick charts, analyzing trends, and how to detect the direction of price movements.
How to Read Candlestick Charts
Learn to read Line, Bar and Candlestick charts, and identify Downtrends and Uptrends.
How to Trade Gold
Learn about the factors that influence the supply and demand of Gold and how to incorporate them into your trading plan.
Popular Market Indicators for Advanced Forex Traders
Never fear charts again! Learn about GDP, CPI, Bollinger Bands, MACD, RSI and Stochastics
Forex Trading Strategies: Political Statements
Learn how political statements affect the currency market and utilize your newfound knowledge in your trading strategy.
Using Signals to Form a Trading Strategy
An in-depth perspective on how you can use Forex trading signals as part of your overall strategy.
Watch the videos and learn the essentials
Risk Management Strategies
Forex Spreads & Bonuses
Meta Trader 4 (MT4) Tutorial
How to Set a Profit/Loss Ratio
Video: Forecasting Trends to Trade Forex
Forex Trading Hours
Advanced trading calls for advanced understanding – not only of the tools and techniques, but also and understanding of the pros & cons of trading specific markets at designated times.
What are the Major Financial Markets
The Forex market centers operate in different time zones with different opening and closing hours. The major global centers for currency trading include Frankfurt - Germany, London - U.K., New York - US, Sydney -Australia and Tokyo - Japan. Although these centers operate 24-hours a day, 5-days per week, the main hours of operation for these markets are set between 08:00 and 16:00 in their local time zones.
For example, your trading success is enhanced during periods of high activity where volatility exists in the market. When trading is light, there is little benefit to be gained – even if there is an overlap of markets. The major financial centres include Tokyo, London and New York, and this is where most of your activity should ideally be concentrated. Once you start trading Forex, you will quickly learn which times are best suited to these important overlaps between major financial centres.
While the number of transactions in the foreign exchange market is difficult to quantify, it is estimated that $4 trillion of turnover occurs daily. This decentralized market is significant to the extent that it pays to have an intimate understanding of opening and closing times of major Forex markets.
What Is the General Trading Calendar?
Forex trading is quite possibly the most flexible and interesting market in the world to trade. Conventional ‘work’ hours like 9-to-5 simply do not apply when the broader market is taken into account. The currency market effectively runs 24-hours a day, 5-days a week – Monday through Friday. Thanks to multiple time zones around the world, vis-a-vis bourses, you can immerse yourself in currency trading around the clock when you have a free moment.
Before you get started, though, it is important to understand precisely what your foreign exchange trading objectives are, since this will determine which hours of operation are best suited to your currency trading needs. Naturally, USD currency traders will be better served when US markets are open, and GBP currency traders will be better served when UK and European markets are open. There are multiple factors that need to be taken into account when it comes to establishing yourself as a Forex trader.
Your tactics, strategies, investment portfolio and analytical insights will certainly impact your success as a Forex trader. We are about to introduce you to the general Forex trading calendar, showing you which markets are active during which times, and how you can trade during the overlaps. You may wish to incorporate Forex trading into your daily routine, or you may wish to “fit” your daily routine into your Forex trading sessions. Either way, it is imperative to choose the hours of operation that will best serve your Forex trading needs.
When is the Best Time to Trade Forex?
Now that you know when markets overlap, you can start to formulate a Forex trading plan based on your particular currency preferences. The most popular currencies are the USD, CAD, AUD GBP, EUR, CHF, and JPY. As a result, you will derive maximum benefit by trading currency pairs when the Asian, US and European markets are open simultaneously. Granted, there is a small window when all three major regions overlap – but this is the most profitable time to trade currencies online.
Features of the Major Trading Centers
The Asian Trading Session
Sydney opens at 22:00 GMT and this officially marks the start of the Asian trading session. At 00:00 GMT, Tokyo comes online and the Asian trading session increases in volume.. During the Asian trading session, the Japanese yen is the most heavily traded currency, followed by the Australian dollar and the New Zealand dollar.
The European Trading Session
At 08:00 GMT, London opens for equity trading. At the same time, Tokyo is in operation, but the overlap only lasts for one hour. The number of market participants is immense when London and Europe are trading and significantly large market movements take place. At this time, Asian day traders are exiting positions and European day traders are entering positions. All currency pairs are traded during the European session, spreads are smaller and volumes are high. The London market is responsible for an estimated 38% of total trading volume – greater than New York and Japan combined.
The American Trading Session
At 13:00 GMT the American trading session begins. During this trading session, an estimated 19% of all currency trading transactions takes place. There are 4-hours of overlap between the American trading session and the European trading session. Trading volumes are higher during this period but volumes taper off when the European market closes. The American trading session features heavy trading of all major currency pairs.
In all markets, there are two notable trading sessions – mornings and afternoons. With overlaps, the number of traders increases, volume is heavier and liquidity is higher. This means you are less likely to see slippage and spreads are reduced. Forex market conditions change depending on national holidays in the US or UK, since these countries are responsible for the highest trading volumes.
Trading Forex on Weekends
Since Forex trading doesn’t require a physical location, it is easy to trade over electronic platforms. All that is required is the presence of buyers and sellers – which is facilitated by these regulated trading platforms. It is best to avoid holding open positions during weekend hours if you are a day trader or a swing trader. It is best to exit positions by the close of the trading day on Friday before the expiration of the American trading session. Significant gaps can occur between the closing price on Friday afternoon and the opening price on Sunday night for the particular currency pair you are trading. The inherent risks of trading currency pairs over the weekend make it unsuitable to everyday traders. If you decide to trade Forex over the weekend, be sure to use a trading diary or journal to mark closing prices. Be sure you understand the importance of the ‘gap’ before you enter a trade. Adjust the percentages to fit your risk tolerance preferences.