So what do you mean by "Tokyo market" and "NY market" that you often hear in newspapers and news?
In the interbank market, the areas where transactions are active differ depending on the time of day. For example, during normal business hours, including for customers, Japanese financial institutions are active in transactions, but in Europe and the United States, because of dawn and dawn, Western financial institutions are involved. There aren't many transactions.
Of course, large financial institutions have branches in major cities around the world, from which they trade forex. However, it is not the main battlefield. In that case, the time zone will inevitably determine the region where trading volume is active. This is called the "○○ market" for convenience.
Currently, the Tokyo market in Japan, the London market in the UK, and the NY market in the United States are said to be the world's three major foreign exchange markets , but there are also the Wellington market in New Zealand, the Sydney market in Australia, and Frankfurt in Germany. Markets, Hong Kong and Singapore markets are also known as major foreign exchange markets.
Due to the time difference, the order in which transactions become active is
Wellington → Sydney → Tokyo → Hong Kong and Singapore → Frankfurt → London → New York
It is common to be. By the way, you may have seen a table that lists the transaction times of each market, but I presume that they were probably created based on the business hours of financial institutions. Will be done. Originally, each market does not have a clear trading time such as from what time to what time, but many markets cooperate with each other to form a foreign exchange market .
However, in general, 7 am Japan time (6 am during daylight saving time) is the time when the transaction for the day ends . It is called "NY Close" , and if you cross this timing, the business day will switch to the next day. In Forex, profit and loss calculation of open positions, swap point calculation, date and time processing, etc. are performed at this time.
