Know more about the Working hours of currency exchanges

Know more about the Working hours of currency exchanges

The Forex market is considered as the largest financial market in the world that trades approximately $1.5 trillion each day. The trading in the Forex is not done at 1 central location but the trading is conducted between participants through the electronic communication networks and phone networks in the various markets in the world. The working Forex exchange or foreign exchange currency market is not traded on the regulated exchange like commodities and stocks. This market comprises of a large network of retail trading brokers and financial institutions that has its own individual hours of operation and working hours of currency exchanges is 24 hours between 5 pm EST to 4.00pm EST Friday in the local time zone. This time is the time when the markets open and closes respectively as it is the trading time of the market. 

The working hours of currency exchanges are 24 hours a day and the reason why the market is open for 24 hours a day is because the currencies are always in high demand. The international scope of the currency trading also means that traders are always present somewhere who are making as well as meeting the demands for any particular currency. The Forex market or foreign exchange market is active and active 24 hours a day that is from Monday morning in the New Zealand through the Friday night in New York. At any given moment, the currency trading desks in the dozens of the global financial centers are active and open in the market. The currency trading do not even stop for the holidays when other financial markets like the future exchanges or stocks might be closed. Currency is very important as it is required around the world for the international trade and also by the global businesses and central banks. There are many central banks that heavily rely on the foreign exchange markets since 1971; it is the time when the fixed currency markets have ceased to exist due to the drop in the gold standards. Since this time, majority of the international currencies are being floated rather than being pegged to gold value.

The economies of every country is shrinking as well as growing each second of every day and the reason for this is political and economic instability and infinite other than the perpetual changes. Central banks also seek to stabilize the currency of the country by trading the currency in the open market as well as keeping relative value compared to the other world currencies. Majority of the businesses that operate in most of the countries seek to mitigate the risk of conducting business in the foreign market and the hedge currency risk. But this is accomplished by entering into currency swaps by giving them the obligations as well as the rights of buying a set amount of the foreign currency for set price in another currency at a particular date in future. Hence the large fluctuations in the currency exchange market are limited and hence the risks is minimized so that more money can be earned.