First market to open?
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Thread: First market to open?

  1. #1
    Kiwi Candles is offline Junior Member
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    Default First market to open?

    At 8am Monday morning (here in NZ) it will be 8pm on Sunday in the UK and 3pm in the US (New York).

    When my trading platform comes to life and opens at 8am Mon and I can see the bid and ask start flashing away,what market is actually open?

    Surely none of the majors have opened at 8pm Sunday UK and
    3pm Sunday in the US,so what am I trading?

  2. #2
    phil838's Avatar
    phil838 is offline FX-Men Honorary Member
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    Quote Originally Posted by Kiwi Candles View Post
    At 8am Monday morning (here in NZ) it will be 8pm on Sunday in the UK and 3pm in the US (New York).

    When my trading platform comes to life and opens at 8am Mon and I can see the bid and ask start flashing away,what market is actually open?

    Surely none of the majors have opened at 8pm Sunday UK and
    3pm Sunday in the US,so what am I trading?
    The markets in a particular country don't have to be open for that currency to be traded.

    Think of the markets like a bank... If a bank in Wellington is open at 8am on Monday I can walk in and trade my USD for Euros, even though the banks in the US and EU are still closed. That NZ bank has USD and Euros on hand, so I can do my trade.

    The forex market works the same way. There are banks in NZ that are open to do the trades, so the forex market is up and running!
    "The market is weird. Every time one guy sells, another one buys, and they both think they're smart." Ancient Trading Proverb...
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  3. #3
    Kiwi Candles is offline Junior Member
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    Ahh ok I see. Thanks.

    SDC where did your message go?
    Forex trading starts at Midnight GMT on Sunday so I believe it must be the Tokyo and Sydney markets as they would normaly be open at that time during the week

    Sydney opens at 10am NZ
    and Tokyo Opens at 11am NZ time

  4. #4
    Clint's Avatar
    Clint is offline FX-Men Honorary Member
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    Quote Originally Posted by Kiwi Candles View Post

    At 8am Monday morning (here in NZ) it will be 8pm on Sunday in the UK and 3pm in the US (New York).

    When my trading platform comes to life and opens at 8am Mon and I can see the bid and ask start flashing away, what market is actually open?

    Surely none of the majors have opened at 8pm Sunday UK and 3pm Sunday in the US, so what am I trading?

    Kiwi Candles,

    The short answer to your question is:

    At 8am Monday morning in New Zealand, the "market" that is open is (1) the worldwide interbank network, (2) all forex brokers in New Zealand, as well as most other forex brokers around the world, and (3) most businesses in New Zealand (except the stock exchange and retail banks).

    The interbank network is up and running essentially around the clock, every day of the year. At 8am your time, on a Monday or on any other day of the week, interbank activity is centered primarily in Tokyo (where it is 5am). Forex orders generated anywhere in the world at that hour will be "cleared" through the Tokyo office of one of the world's large banks. So, even if your broker in New Zealand deals mainly with Deutsche Bank in Germany, or Barclays Capital in the U.K., or Citigroup in the U.S., your early morning forex order will likely be filled in Tokyo.

    Around mid-afternoon, Tokyo time, the big banks' Tokyo offices will begin handing over all trading responsibilities to their offices in London, as the start of the business day in Europe approaches.

    Regarding trading volume in the "majors", it is low --- but not zero --- at 8am Monday morning, New Zealand time.

    As a very rough rule-of-thumb, at any given hour of the day, total forex trading volume worldwide is proportional to the sum of the forex market-shares of all the countries/regions which are open for business at that hour.

    New Zealand at 8am on a Monday morning is an interesting special case, because it is the only important country open for business at that time. New Zealand transacts the equivalent of 3 billion USD per day in spot forex volume.

    At 8am New York time, on the other hand, central Europe (218 billion USD per day), the U.K. (341 billion USD per day) and North America (185 billion USD per day) are all open. These regions together account for 744 billion USD per day of spot forex volume.

    This 744 billion is 248 times as large as New Zealand's 3 billion. So, according to our rough rule-of-thumb, we would expect world trading volume at 8am on a Monday morning in New Zealand to be tiny compared to trading volume 16 hours later, at 8am New York time.

    Here's a previous post which touches on this same subject --- Is the forex market open 4/2/2010?

    Regarding the worldwide interbank network, here's a Table showing the 10 largest banks ranked according to forex volume transacted, as of about a year ago (there may be more current information available now):


    I hope this answers your questions.

  5. #5
    Graviton is offline FX-Men Honorary Member
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    Great answer Clint!

  6. #6
    svenstp is offline Newbie
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    good thing it was short answer..

    maybe im missing something here but i dont get it why one of my brokers from indonesia
    start with trading sunday at 23.01h my local time and other from australia starts at 00.01h monday (one hour later)?
    isnt australia ahead of us all with counting the time? sry for my english, hope you understand my question.
    and are there brokers that start with the trading week even earlier? who is the first?

    cheers, svenstp

  7. #7
    FringFX is offline Master Contributor and Member
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    Quote Originally Posted by svenstp View Post
    i dont get it why one of my brokers from indonesia
    start with trading sunday at 23.01h my local time and other from australia starts at 00.01h monday (one hour later)?
    isnt australia ahead of us all with counting the time? sry for my english, hope you understand my question.
    and are there brokers that start with the trading week even earlier? who is the first?
    cheers, svenstp
    it is probably just a time preference of your broker
    I believe it is NZ then Australia, and then countries in subsequent timezones come next (from east to west)

  8. #8
    Clint's Avatar
    Clint is offline FX-Men Honorary Member
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    Quote Originally Posted by svenstp View Post

    ....i dont get it why one of my brokers from indonesia start with trading sunday at 23.01h my local time and other from australia starts at 00.01h monday (one hour later)?
    I understand that one broker is in Indonesia, and one broker is in Australia. But, where are you?

    When you say "my local time", is that Indonesian time (GMT+7), or some other time zone?
    - Risk is the Price we pay for Opportunity -

  9. #9
    Fxmall is offline FX-Men Honorary Member
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    NZ opens first..and then others open shop!

  10. #10
    svenstp is offline Newbie
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    No no, my time zone is UTC+01:00 (eastern europe) and that is why i asked the question in the first place.
    So, it should be NZ and AU brokers first starting.
    Thx guys.

    Cheers, SvenStp

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