There are specific trading hours for financial markets based on their geographical location. Blockchain technology, cryptocurrencies, and security tokens have created a new form of financial markets, which are no longer constrained by geography and time. The purpose of this article from Mazdax Academy is to provide an overview of the 24-hour financial market.
The importance of time in financial markets
The two main pillars of any financial market are time and trading hours. If you have experience in the financial markets, you are definitely aware of this. For example, the Iranian stock market is open from 9:00 A.M. up to 12:30 P.M. Also, you must pay attention to the days of the week for depositing or withdrawing your balance. Because most markets are only active during working days.
The following are the working hours of the world’s most important stock markets:
New York: from 9:30 a.m. to 4:00 p.m. on weekdays.
Nasdaq Stock Exchange: from 9:30 am to 4:00 pm on weekdays.
Tokyo: The trading hours of the Tokyo Stock Exchange are divided into two parts: the first part from 9:00 am to 11:30 am and the second part from 12:30 pm to 3:00 pm on weekdays.
Shanghai: The trading hours of the Shanghai Stock Exchange are divided into two parts: the first part from 9:15 to 11:30 am and the second part from 1 to 3 pm on weekdays.
Hong Kong: from 9:30 am to 4:00 pm on weekdays.
London: from 8:00 a.m. to 4:30 p.m. on weekdays.
Due to this, as a trader, you should always adjust your strategy following the open time of the market.
What does the term 24/7 mean?
24/7 is a term that refers to the provision of services 24 hours a day and 7 days a week. In other words, the work is carried out continuously and without interruptions. The term 24/7 in the financial market refers to the possibility of trading all the time. So, in such a market, there is no need to be concerned about the closing time or the occurrence of events outside of trading hours. The 24/7 market enables traders to trade based on their own time zones, no matter where they are in the world. In short, the advantages of trading in a 24-hour market are:
- ُThe possibility to operate at all hours of the day and night
- easy accessibility
- The possibility of doing global transactions
- Instant settlement
What are the most significant 24-hour financial markets?
1. Forex market
The 24-hour forex market is the largest financial market in the world. Forex is open 24 hours a day, five days a week. The forex market is divided into three trading sessions: Asia, London, or Europe, and New York. This allows forex traders to select their trading times following their schedules and local time zones.
Forex is traded over-the-counter (OTC), which allows the market to remain open 24 hours a day. Transactions in forex are conducted through Electronic Communication Networks (ECNs) in a wide variety of locations around the world, mostly by large banks and other actors.
Forex market features
- It is active 24 hours a day and 5 days a week.
- When the market opens at the time of overlap, there is the greatest level of volatility.
- The entry and exit of trades can be made at any time during a global business day.
2. Cryptocurrency market
With the advent of blockchain technology and the introduction of Bitcoin in 2009, a new form of financial asset known as cryptocurrency was born. Due to the decentralized, transparent and secure nature of blockchain technology, many traders around the world have shifted their attention to cryptocurrencies. Today, digital currencies are available on exchanges and trading platforms around the globe. Their market is open 24 hours a day, seven days a week. The price of digital currencies can fluctuate wildly due to this feature, and your property value can change wildly within minutes or even seconds.
As of today, there are more than 5000 different tokens and dozens of blockchain networks operating in this field, and many traders around the world operate in them intending to make short-term as well as long-term investments.
Features of the cryptocurrency market
- 24-hour market, 7 days a week
- High liquidity
- No geographical restrictions
- Security and transparency of transactions
3. Securities token market
In a nutshell, Security Tokens are considered the latest financial achievement and a product of blockchain technology. Security Tokens are essentially digitalized shares of companies. The Securities Organization supervises them, and they utilize blockchain technology to facilitate transactions without geographical or time restrictions. There is a discussion here about the laws governing stocks, securities, and security tokens. Regulatory authorities consider security tokens to be securities and therefore subject to regulations.
Features of the security token market
- High liquidity
- A broader scope than the traditional stock market
- 24-hour market, 7 days a week
- Programmability (based on blockchain and smart contracts)
| Forex | Cryptocurrencies | Security Tokens | |
| Market Type | Centralized | Decentralized | Decentralized |
| Trading Hours | 24/5 | 24/7 | 24/7 |
| Liquidity | Medium | Good | Good |
| Ease of Use | Not bad | Easy | Easy |
| Flexibility | Based on broker rules | High (blockchain) | High (blockchain) |
| Global access | No | Yes | Yes |
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