The Time in the Major Financial Centers Impacts Market Players

Foreign exchange is a continuous global market, providing participants with 24-hour market access. The only breaks in trading occur during a brief period over the weekend. Although foreign exchange is the most liquid of all markets, the fact that it is an international market and trading 24-hours a day, the time of day can have a direct impact on the liquidity available for trading a particular currency.

The major dealer centers and time zones are that of Sydney, Tokyo, London, and New York. Therefore, traders must consider which players are in the market, since in the modern interconnected financial world, events that occur at any hour, in any part of the globe, can affect some or all parts of the investment community.

The market's 24-hour nature is a substantial attraction to traders that prefer to trade at all times of the day, or night.

*Under volatile market conditions, a broker may not be able to execute a limit or stop order at the exact price specified by the trader. CMS’s own policy, however, is to attempt to honor all stop and limit orders up to 10 lots in size.
Forex is an over-the-counter (OTC) or off-exchange market.