A 24-hour Forex market allows dealers to trade at any time of day or night. Although currencies may be swapped at any time, a single trader can only maintain track of a position for a certain amount of time.
Because most traders cannot watch the market 24 hours a day, opportunities will be missed or a surge in volatility may induce a move against an existing position. As a result, a trader must be aware of how volatile the market is and decide when it is best to restrict risk based on how they trade.
There are three peak activity times in the market: Tokyo, London, and New York. These designations are interchangeable since the three cities represent the key financial hubs of their respective regions. Because the majority of banks and companies in the affected