Akash Jha
Many people are under the impression that the market for cryptocurrencies was the first to be open nonstop from its inception. Nevertheless, you cannot say anything with absolute certainty. The global foreign exchange market has been active nonstop for several decades, with trading taking place around the clock, every day of the week. Keep reading to learn more about the opening and closing times of the currency market.
Forex Market Trading Times in India
The foreign exchange market is vast and varied. There are governments involved, as well as hedge funds and even tourists. The Foreign Exchange (FX) market is a bigger market, but you are specifically interested in the currency trading industry.
India’s currency trading market is a place where market participants can buy and sell various derivatives of the local currency. Exchanges, brokers, and market participants including corporations, banks, and individual investors like yourself are all a part of this system.
Pairs of currencies can be traded in which either INR or no INR is included in the quotation. Today in the Indian forex market, the opening and closing times for the two types of currency pairs are distinct.
However, there is a great deal of overlap between the market hours for trading different currencies. Here we explain when the Indian foreign exchange market (for both INR and non-INR pairs) opens and closes each day.
Indian Rupee Currency Trading Hours
Forex traders in India can purchase and trade futures for four currency pairs during these trading hours: GBP-INR, EUR-INR, USD-INR, and JPY-INR. FCY-INR is a popular abbreviation for these combinations, where FCY stands for foreign currency.
- Opening Time: 9:00 a.m.
- Closing Time: 5.00 p.m.
The Indian foreign exchange market opens at 9:00 a.m., 3.5 hours after the Tokyo market opens, and 2.5 hours after the Hong Kong, Australian, and Singapore markets open.
This is significant because overlapping markets are thought to affect the liquidity and volatility of certain currency pairs. This is especially true if the quote or base currency is actively traded, like the Japanese yen.
The closing of the European currency markets, especially those in Germany and the United Kingdom, coincide with the closing of the Indian forex market for INR pairs at 5:00 p.m. The British pound and the Euro both lose value against the Indian rupee as a result of this..
Cross-Currency Trading Hours
The Euro and the US Dollar, the British Pound and the Japanese Yen, and their respective pairs all have futures contracts. These currency pairs in foreign exchange trading are based on the use of two distinct currencies. Therefore, US Dollars can be found in all of them.
Therefore, some foreign exchange (FX) pair hours differ from INR pair hours. They overlap with those of the United Kingdom, the United States, and Germany, and are longer by two hours.
- Opening Time: 9:00 a.m.
- Closing Time: 7.30 p.m.
Cross-currency pairings tend to have longer duration on the currency market, however liquidity may not always be optimal. Now that you know when the Indian forex markets are open, it’s helpful to know when the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and other markets close for the day.
Why is the Forex Market Considered to be Open 24 Hours a Day?
The foreign exchange market is unique in that it never closes for business anywhere in the world. A New Zealand currency trader, for example, would start their day at 3:30 a.m. IST and end it at 2:30 a.m. IST. Since the North American market opens after midnight in IST, foreign exchange transactions are possible in theory six days a week. There’s a catch, though. Certain pairings of currencies do not have continuous market liquidity.
The situation can be explained logically. While some countries use a global currency (like the Euro), all countries have their own unique currency. During forex market hours, traders from that country or region are more likely to use their local currency.
Furthermore, it is widely accepted that the global currency market is most volatile when trading sessions from different regions and countries overlap. That someone, somewhere, at any hour of the day will start trading currencies is a reasonable assumption. Because many FX timings are same. However, keep in mind that not every time of day is conducive to forex trading.
When is the Best Time to Trade Forex in India?
Currency trading between different countries continues until 7.30 p.m. in India, when the forex market closes. However, there is some inconsistency in the hours that the Indian currency market is open with respect to liquidity and fluctuation.
The reason for the discrepancy is the overlap of trading sessions around the world. This point has been made. The claim is that the volume of trade in a given currency pair can vary widely based on two variables.
The first has to do with the working hours in a particular country. For instance, during US currency trading sessions, a currency pair in which the US dollar is used as the quote or base currency may enjoy high liquidity. Many global trading sessions coincide with the current currency market hours in India, according to experts.
Wrapping Up
The Indian forex market is open from 9 am to 7:30 pm (local time). Pairs denominated in INR can be traded until 5:00 pm, while pairs denominated in other currencies can be traded until 7:30 pm. There will be a total of 19 non-trading days for the Indian currency market in 2023.
Although potential for financial gain exist in the foreign exchange market, the global nature of the industry and the prevalence of large players who can effectively price out smaller competitors are seen as major risks for retail traders.
Read Also : Hindustan Zinc has announced an interim dividend payment of Rs 7. Consider the following Vedanta payout:
