Although other nations like Canada and Mexico contribute to the North American market, the U.S. markets’ activities dominate the North American Session. When the North American Session is halfway through its trading hours, the European Session starts after the Asian Session has already ended.
The North American Session, often known as the New York Session, accounts for 16% of all forex volume worldwide.
24-Hour trading Explained
A quality of select markets that allows investors to trade throughout the clock is 24-hour trading. Traditional stock markets operate in a time window based on the working hours of the jurisdiction in which they are located. Yet, due to the global nature of modern online trading, investors from regions with a significant time difference may have inconvenient market opening hours.
Certain markets are open around the clock to allow global investors to trade at convenient hours. Forex and crypto are two of these markets. To provide fewer trading opportunities for international investors, certain more traditional markets, such as stock trading and options, operate during longer “trading hours” (GTH).
What can you Trade 24 hours a Day
You might be wondering, “What can I trade 24 hours a day?” at this point. Our specialists have examined the around-the-clock trading possibilities of significant markets to assist you in finding 24-hour trading opportunities.
Forex, or foreign exchange markets, different currencies against one another. Forex thus requires a 24-hour trading market.
The forex markets are open 24 hours a day, seven days a week, and use three overlapping regional clock periods to align themselves with the low period. The Australasian region, which includes the Sydney and Tokyo sessions, is the first market to open. From 10:00 PM UTC to 9:00 AM UTC, these markets are open.
Based in London, the next session will represent Europe. The time frame for this session is 8 UTC to 5 UTC. The New York market session lasts from 1 PM UTC to 10 PM UTC and is the third and final session.
Other Options to Trade 24 hours a day include:
- Stocks & ETFs
- Binary Options
Advantages Of 24-Hour Trading
- More Trading Signals: Longer or longer market hours produce more actionable trading signals for day traders to speculate on.
- Global trading: The availability of a 24-hour market allows investors worldwide to trade well-known financial assets.
- Additional price history and data: A market that trades for longer periods each day has more trading data that traders may utilise to develop evidence-based strategies.
- Unique Dynamics: 24-hour markets, like forex and crypto, have unique dynamics that allow for alternate trading strategies.
Disadvantages of 24-Hour Trading
- Missed opportunities: When away from their computers or trading applications, investors may lose out on trading opportunities in 24-hour markets.
- Risky strategies: Investors frequently use instruments like expert advisors (EAs) or automated trading bots for full-time, round-the-clock market monitoring. It is risky to run these apps unattended.
- Trading/life balance: Traditional market hours allow investors to disengage from global markets. Retail traders may find it more difficult to establish strong boundaries in 24-hour trading markets.
24-Hour trading Strategies
Our experts have put together several 24-hour trading strategies for beginners if you’re eager to start trading around the clock.
Trading the News
Trading the news is a universal strategy, but it may be especially successful when trading on a global market with prolonged hours, like forex, crypto, or energy, and precious metals CFDs.
24-hour markets allow investors to follow and respond to events anytime, whether they want to “buy the rumour, sell the news,” as many suggest, or trade on breaking news. It also provides traders a head start on potential changes to the NYSE’s opening price, for instance.
Due to automating this strategy’s complexity, bots may have problems entering the market before humans do.
Forex Session Overlaps
Using greater volume and liquidity when two forex sessions overlap is another 24-hour trading strategy. These periods might magnify price fluctuations based on global events, regional economic changes, and other variables.
Historically, the period with the highest volume occurs when the London and New York sessions coincide.
While trading CFDs or crypto, investors can automatically trade around the clock by using a 24-hour trading bot or expert advisor (EA). These bots may be purchased using predetermined signals or configured using patterns.
While crypto platforms like Pionex enable customers to use more than 15 integrated trading bots for free, most CFD platforms support EAs through platforms like MetaTrader 4 and MetaTrader 5.
Crypto Spot / Futures Arbitrage
Since the crypto markets operate around the clock, futures are traded as everlasting contracts across popular currencies like Bitcoin and Ethereum. The Spot / Futures Arbitrage strategy allows investors to exploit these everlasting contracts with futures markets.
A premium of over 15% a year can be earned by traders who maintain both futures and spot positions. Of course, traders may do this manually, but beginners, they can utilise pre-built bots for 24-hour trading to get passive money.
Around-the-clock trading may give investors several advantages. They have a significant positive impact on investors who reside in countries remote from important trading hubs. 24-hour or longer hours are advantageous for instruments like forex, CFDs, cryptos, and well-known option contracts.
To automate their 24/7 security trading strategies, traders frequently employ bots. It might be risky to leave systems unattended. Perhaps missing market movement outside of your time zone is another disadvantage of 24-hour trading.