Forex is a 24-hour market, which means that trading can be done around the clock from Monday to Friday. The liquidity of the market, however, is determined by the opening hours of the main financial centers. These include New York, Japan, and London. These financial centers have the largest volume of trading activity and are therefore considered to be the most liquid. When one center closes, another opens, making it possible for traders to take advantage of market movements around the clock.
This high liquidity also makes it possible for traders to enter and exit positions quickly, which is important in fast-moving markets. However, it's essential to keep in mind that high liquidity can also make the market more volatile and prone to sudden price changes.
These financial centres and their specific attributes are included in this lesson.