Overview of international currency markets
For currency market, the concept of a 24-hour market has become a reality. In financial centers around the world, business hours overlap; as some centers close, others open and begin to trade. For example, UK and Europe opens during afternoon (as per India time) time followed by US, Australia and Japan and then India opens. The market is most active when both US and Europe is open. In the New York market, nearly 67% of the day’s activity typically takes place in the morning hours.
Given this uneven stream of business all day and all night, showcase members regularly will react less forcefully to a swapping scale improvement that happens at a moderately inert time of day, and will hold up to see whether the advancement is affirmed when the real markets open. A few foundations give careful consideration to improvements in less dynamic markets. In any case, the 24-hour showcase provides a persistent "continuous" market evaluation of the recurring pattern of impacts and dispositions as for the exchanged monetary standards, and an open door for a snappy judgment of unforeseen occasions.
With many traders carrying pocket monitors, it has become relatively easy to stay in touch with market developments at all times. With access to all of the foreign exchange markets generally open to participants from all countries, and with vast amounts of market information transmitted simultaneously and almost instantly to dealers throughout the world, there is an enormous amount of cross-border foreign exchange trading among dealers as well as between dealers and their customers. As per Bank for International Settlements (BIS) survey of April 2010, daily turnover of currencies in the global market is approximately USD 3.9trillion, making it the largest traded asset class. At any moment, the exchange rates of major currencies tend to be virtually identical in all the financial centers where there is active trading.
AS Chakravarthy NCFM Hyderabad : Stock Market Training Institute