If there is one thing that the foreign exchange market or Forex Trading is known for, it is the special working hours that this market has. Unlike conventional markets that function as centralized organizations with fixed working hours, the forex market operates on another league of its own. It is therefore the subject of a lot of speculation as to what is the best time to trade in the forex market.
The peculiar nature of the foreign exchange market is that this market is decentralized. The fact that there is no centralized entity in charge means that timing has a much more liberal nature. In this article we are going to focus on the timing and available time zones in the forex market and also take a look at a special feature of the XauBot Pro for auto detection of time zone in the forex market.
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What Is the Nature of Timing and Time Zones in Forex?
As we discussed briefly in the introduction, the nature of timing itself in the foreign exchange market is peculiar to begin with. It is truly unlike most other financial markets in the world.
And of course the reason can be found in the fundamental nature of the market itself. Most financial markets are centralized by nature. This means there is a centralized entity in charge of overseeing the operations and activities that take place in this market. You can think of any stock market around the world that operates within the purview of its governing entity.
But the case of the forex market is different. The underlying nature of the forex market is not one of a centralized structure. It is quite the contrary. It means that the underlying nature of the forex market is decentralized. There is not centralized entity in charge. Instead there are countless markets around the world that put together form the overall foreign exchange market.
Each one of these markets around the world is also known as a forex session. A session is basically a duration of time in which the trades are taking place in one specific area of the world or time zone of the world in the foreign exchange market.
As a result, we have so many different sessions around the world, including the Tokyo session, Sydney session, London session, New York session, and so on and so forth.
And this is precisely how the foreign exchange market is able to function in the form of a market that never sleeps 24 hours a day. This is the case for the forex market every day. The only exceptions are on the weekend, meaning on Saturday and Sunday when the market is not active. Other than that, the forex market is active on the rest of the days of the week 24 hours a day.
Such long hours of being active, which is in essence non-stop operations, has serious consequences for traders. There are different factors that traders ought to consider when deciding on when to trade in this market. And that is what we are going to focus on in the next section.
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What Is the Importance of Time Zones in Forex and How to Pick the Right One?
Now the question to be answered here is regarding the importance of time zones in the forex market.
The importance of these numerous time zones and trading sessions in the forex market has to do with the importance of trading volume and liquidity.
The thing is that when certain sessions are active, they translate into higher trading activity on the part of the traders. And that in turn leads to a higher level of liquidity in that given session.
And another important and key factor about time zones in the forex market is when two sessions in this market overlap with each other. The overlap of two sessions occurs when two markets are active at the same time. This is mostly seen when the ending hours of a market are the same as the opening or beginning hours of another market. This is what is known as an overlap between two sessions.
During an overlap we have a heightened degree of liquidity as a result of increased trading operations due to the high number of traders that are present.
This is why a lot of traders tend to take advantage of these overlaps and get the most out of them while they can.
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XauBot Pro’s Auto Detection Time Zone Feature
Speaking of time zones, XauBot Pro has certainly not forgotten to consider this aspect into its automated trading process. As part of its commitment to automating this process as a whole, XauBot Pro has also integrated a feature known as Auto Time Zone Detection into its array of functions and features that users can enjoy.
If you choose to use this option, then the expert advisor will automatically detect your current time zone and adjust its trading operations based on the sessions that are taking place at or near your locale and time zone.
This feature will relieve you of the burden to manually input your time zone every time you want to input data for the expert advisor.
Although keep in mind that this parameter is one that you can opt in and out of just like most other parameters that are made available for users in XauBot Pro.
It means although the process is automated for you, it is still you as the trader who gets to decide which features and parameters to use and which ones not to implement.
But if you do choose to utilize this parameter, then you can rest assured that wherever in the world you are, the EA will automatically detect your time zone and make adjustments in the trading process accordingly.
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Conclusion
In this article we took a look at the notion of time zones in the forex market and the whole idea of timing in this market, most notably its working hours and their impact on the trading process. We also discussed the feature of XauBot Pro called Auto Time Zone Detection that enables the expert advisor to automatically pick up on your time zone without having to manually input any data.
