One of the neat things about trading Forex is that you can do it from anywhere. As long as you have a computer and a solid internet connection, it doesn't matter where in the world you happen to be; you can log on and make some pips. That being said, because of this global market, it can be tricky getting the timing right.
Why do I need to worry about other time zones?
Occasionally, we hear this question from new traders. Why worry about time zones, how does this affect me? It's not so much the time zone that is important; rather, it is the timing. As a trader, you want to be aware of what is going to affect the market conditions you will be trading in, and these factors are going to be happening outside of your home office, local college, or where ever you may trade. A prime example would be timing your trades to session opening. What time you trade a session will affect the liquidity, or amount of trades being processed, of the market. Traders can find this graphic showing times of higher and lower liquidity on our site here.
You can see that liquidity usually picks up during session opens, especially the London and New York session. Being aware of what time you're trading and the liquidity can help you know what type of market conditions, such as the volatility or pace, you can expect to be trading, and whether or not you're going to need to make adjustments for these conditions. New traders should try trading at different times through out the day to find out which time works best for them and their trading strategy.
Another example of critical timing would be news events. As a trader, you're going to need to keep abreast of news events as most major news events, such as the uncertainty of a recent presidential election, will affect the markets. Traders use economic calendars, such as Trading Economics or Forex Factory, to stay on top of planned news events. Experience has taught us that there's nothing worse that being caught in sudden whipsaws because you forgot about a press release.
Why can't I change my Alveo time zone?
Alveo is the Apiary Fund's trading platform; the clock on Alveo will always be in GMT. This is because we have traders from all over the world, so it's easier for us, and you, to keep track of trades if everyone uses a universal timezone. Even if you're not a trader with the Apiary Fund, finding tips to quickly convert time zones can be extremely useful in your daily Forex interactions.
How can you keep track of timezones while trading?
One option you have is to use the sessions clock on our website here; we also encourage Alveo traders to take advantage of the Alveo 1.5.1 sessions clock. Another tool we often use here in support would be a time zone converter, such as worldtimebuddy.com.
Keeping track of time zones while trading, and being able to convert them, can help you optimize timing while trading sessions, news events, and when the market opens and closes. Improving your attention to these factors will reflect positively on your trading.