The standard time in a nation or area is called local time. It guides numerous operations, including financial market trading. Trading novices must know local time to determine market hours, economic news, and trade execution.
Why Is Local Time Important in Trading?
Trading occurs across time zones in global financial markets. Country or region-specific time determines market opening and closing hours. Traders must know local time to know when markets are open. Market volatility, liquidity, and trading volume vary by time of day, making this critical.
Key Market Opening Times
Examples of local time zone key market opening times:
NYSE opens at 9:30 AM EST and closes at 4:00 PM EST.
LSE – Opens at 8:00 AM GMT and closes at 4:30 PM GMT.
Opening time: 9:00 AM Tokyo Stock Exchange (TSE). Closes at 3:00 PM JST; Japan Standard Time.
Sydney Stock Exchange (ASX)—Opens at 10:00 AM AEST and closes at 4:00 PMTrading AEST During Overlapping Hours
Traders benefit from overlapping market hours. This occurs when many major marketplaces open simultaneously. Due to greater liquidity and trading activity, these times may provide more lucrative deals. Traders should be aware of local time zone overlaps to capitalize on pricing and market swings.
News/economic announcement impact
Economic statements and news releases affect financial markets. These occurrences are carefully monitored by traders, who change their methods. Knowing the local timing of these announcements helps plan and execute transactions. Knowing market response times in different time zones helps manage risk and capitalize on market opportunities.
References
These sources provided this article’s information:
Investopedia (n.d.). Trade Hours. Retrieved from https://www.investopedia.com/trading/trading-hours/ Trading 101. (n.d.). Stock Market Opening and Closing Times Matter. Find out when stock markets open and shut at https://trading-education.com.
MarketWatch (n.d). Economic Calendar. From https://www.marketwatch.com/tools/calendars/economic