The global Forex market requires some understanding of GMT (Greenwich Mean Time). GMT is the time at Greenwich, England which is used as the basis for standard time throughout the world. GMT is commonly referred to as World Time. Forex traders around the world use GMT in order to know when global economic events are scheduled to occur. For instance, when the U.S. releases an economic report at 8:30 AM Eastern, it is 13:30 GMT (or 1:30 PM) in London, England. In a nutshell, GMT is a 24-hour clock from 0:00 to 24:00. When you become familiar with GMT, it will be easier to determine and plan your trading according to world economic events.
Most Active – From European Open to U.S. economic news is a beige colored area on the left-hand side of the chart. This time frame is generally considered to be the most active trading period during the Forex trading day because of the number of world markets, banks, and financial institutions opened.
Tomorrow / Yesterday – For a matter of convenience, an imaginary line known as the International Date Line is used to separate the Earth into two hemispheres, East and West. Based on the international date line, a trader in the U.S. may be trading one day apart from a trader in Australia. In this instance, we highlighted in blue time periods which are referred as Tomorrow compared to other time periods. Likewise, we highlighted in yellow the time periods that are referenced as Yesterday in comparison to other time periods.
CompassFX designed this time activity chart to assist your trading. You are welcome to print, copy, and share with your friends and associates who also trade the Forex.