But why is it that the market is open for such a long time? Let me tell you why.
In the stock market you can only trade stocks that are available in certain markets. A stock may be found in a specific market but it may not be found in another market which means that you can only trade specific stocks at specific markets. For example: you can’t trade stocks found in Europe with the help of the New York Stock Exchange (NYSE). Add that to the fact that the stock exchange is only open for less than half a day and you have a very limited trading time.
In forex there are 4 major markets available for trading and since the currencies being traded are all the same no matter what market you trade with this means that you can trade with all 4 major markets whenever they are open and since their opening times overlap this means that there will always be an open market for you to trade with.
The forex brokerages are the ones responsible for entering these trades for you. The spread is used to pay for the charges that these brokerages and markets have.
As stated previously: major forex markets open with overlapping times. These 4 markets are found in London, New York, Sydney and Tokyo. All 4 major markets remain open for 9 hours.
The New York market opens 5 hours after the London market opens. The Sydney market opens right after the New York market closes. The Tokyo market opens 2 hrs after the Sydney market opens and the London market opens again 8 hrs after the Tokyo market opens.
That goes on from Monday to Friday, up to half a Saturday for some time zones; and then the market closes. The first market to hit Friday will close first and the last one to get to Friday will be the last one to close. The first one to open will be the first one to hit either Sunday afternoon or Monday and so on. Which market opens first and closes last usually changes yearly because of daylight savings.
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