London is Forex Capital of World

If you are beginer or experienced forex trader you will know London is Forex capital of World. However, the first thing we need to do is to study and look at the financial capital of the entire world with respect to forex. London is the answer to the former question as England is definitely the financial capitl of the globe.

The most common mistake which people make is this: They consider the United States to be the financial capital of the world. This is because they assume that as the United States is the stock market as well as the economic capital of the world, and hence, it’s the same thing with forex also. However, this is not true. Hence, there is a bigger chunk of American banks with trading floors in London than any other place in the entire world.

There is another meaning to this. This might also ascertain that being the trader, the UK’s business working hours will be more useful and fruitful to you than any other point of the day as that will be the time when the maximum number of trade or transactions will take place. These times are from 8 am to 6 pm UK time. You can give or take an hour from either end.

As a rule, the United Kingdom’s business hours are actually from 9 to 5 GMT (you might have to reduce one or add one hours at times as the UK clock undergoes a change twice a year).

However, the most alluring feature of forex is that it is a 24 hour market. It starts as the sun rises in Australia and goes on all around the world, the forex, basically “never sleeps”.

Though you can trade at any point of time, the best time to do is during the business hours of the United Kingdom. Yes, news time is also very important and this often occurs around the opening of the US open normally (no, we are not talking about the golf tournament. This statement means that the trading hours of the US begin at 8a.m. EST)

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