Foreign exchange trading offers many opportunities to profit from price developments. Since the market is particularly liquid, investors have countless opportunities to invest. The only question is which currency pair to choose for the position. This is where the investors themselves are called upon, because they decide in which currency pair they want to invest money. For inexperienced investors this is certainly no problem, but for budding investors it can be difficult. That is why forex trading is also controversial, especially with regard to CFDs.
Forex trading 24/7 - trade foreign exchange around the clock?
Trading securities or other assets is only possible at certain times. But the forex market never sleeps and therefore investors can theoretically trade 24/7. However, there is one restriction: the exchanges must be open for investors at Exness Thailand to invest. Trading is possible on the European exchanges from Monday to Friday between 8:00 am and 4:00 pm. The situation is different on the American and Asian/Australian stock exchanges: The American stock exchanges open between 4 p.m. and midnight on Mondays to Fridays and the Asian stock exchanges even open on Sundays. The reason is the time difference due to the individual time zones. This actually makes it possible for investors to be active on the foreign exchange market almost 24/7.
Trading volume differs according to time zones
The trading volume differs significantly on the individual exchanges and at the trading times. Currency pairs that include the USD have high market movements especially during the American trading hours of the stock exchanges. On the European exchanges, it is the currencies euro, Swiss franc and pound that show a lot of movements during business hours on the exchanges in London, Frankfurt, etc. Investors can of course take advantage of this. Of course, investors can take advantage of this, because many movements also mean a higher trading volume and thus more favourable spreads.
Set an alarm or use forex signals?
What do investors do if they want to profit from the different time zones and trade the prices on the individual stock exchanges - set the alarm clock or rather use forex signals? Of course, investors can set an alarm clock and become active on the stock exchanges themselves. Realistically, however, this is hardly feasible for hobby traders in the long run, because they hardly get up in the middle of the night to trade a position. After all, most of them have a job to do and do not have the opportunity to sit in front of the PC at night and trade foreign exchange.
These traders could, for example, become active early, during the opening hours of the European stock exchanges and before they start work. Trading activities after work are also still possible due to the stock exchange closing time at 4 pm. In addition, the American stock exchanges are also still open at this time. However, if you want to trade all the stock exchanges as efficiently as possible, you should use signal generators to help you make your trading decisions.
Automatic signal generators or human signal generators: What is the difference?
When it comes to forex signals, there are differences between automated and human signal generators. As the name suggests, automated signals are provided via a calculation or algorithm. A program calculates whether or not there is a signal to trade based on current market data. Traders are informed about this signal via push notification or SMS (usually individually selectable) and can use the signal for their trading activities.
Automatic trading - yes or no?
Some systems combine the automatically generated signals with automatic trade execution. This means that investors set desired parameters in advance (such as minimum and maximum investment) and the programme analyses the prices and executes the trading activities. The trader thus virtually abandons his own initiative and lets the programme decide. This procedure has advantages, but also disadvantages.
One of the advantages is that investors can sit back and relax and, at best, achieve particularly easy trading successes on the basis of the calculations. However, despite the best programming, software can change from time to time; errors can creep in. If this goes unnoticed, in the worst case the software makes the wrong decisions and investors lose their capital. Therefore, we recommend only using such EAs if investors are sure that the programming was done correctly and the processes behind the EAs are understandable.