How do the opening hours of forex trading affect the volatility of digital currencies?

3 answers

• Nov 28, 2021 · 3 years ago
  The opening hours of forex trading can have a significant impact on the volatility of digital currencies. During the hours when forex markets are open, there tends to be higher trading volume and increased liquidity. This can lead to greater price fluctuations and volatility in digital currencies, as they are often traded against major fiat currencies like the US dollar or euro. Traders and investors closely watch the forex market opening hours to gauge potential price movements and adjust their strategies accordingly.
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• Nov 28, 2021 · 3 years ago
  The opening hours of forex trading play a crucial role in determining the volatility of digital currencies. When major forex markets such as London, New York, and Tokyo are open, there is a higher likelihood of increased trading activity and market participants reacting to news and events. This can result in sharp price movements and increased volatility in digital currencies. On the other hand, during the hours when forex markets are closed or less active, the trading volume and liquidity may decrease, leading to relatively lower volatility in digital currencies.
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• Nov 28, 2021 · 3 years ago
  According to BYDFi, a leading digital currency exchange, the opening hours of forex trading can indeed impact the volatility of digital currencies. The forex market is one of the largest and most influential financial markets globally, and its trading hours often coincide with the peak trading hours for digital currencies. As a result, the actions and sentiments of forex traders can have a cascading effect on the prices and volatility of digital currencies. Traders and investors should be aware of the opening hours of forex trading and consider them as a factor when analyzing and predicting the volatility of digital currencies.
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