What platform has 24 hour trading?

Technological advancements have transformed the way traders operate today. While once bound by conventional trading hours, the introduction of platforms like the MetaTrader 4 now means traders have the flexibility to participate in global markets, 24/5.

MetaTrader 4 (MT4)

Launched by MetaQuotes Software in 2005, the MT4 platform has since gone on to become one of the most popular platforms in the world, particularly among forex traders. There are several reasons for this. It offers almost all the tools required including advanced technical indicators and automated trading.

The platform is also easy to use, with an intuitive interface, making it suitable for both beginner and experienced traders. MT4 accommodates a range of asset classes, but it is probably most recognised for currency trading in the forex market, a decentralised market that operates 24/5.

Global trading sessions

Unlike many other markets, the forex market is comprised of four key sessions that operate in different time zones, 24 hours a day, 5 days a week. This gives global traders 5 days of uninterrupted trading.

The four sessions are:

1. Sydney session
2. Tokyo session
3. London session
4. New York session

The Sydney session kicks off first, operating from 7:00 am – 4:00 pm local time. The Tokyo session becomes active next, from 9:00 am – 6:00 pm local time. London opens at 8:00 am and shuts at 5:00 pm (local time), while New York begins operating at 8:00 am and shuts at 5:00 pm (local time).

While the Sydney session is not the most liquid in comparison to Tokyo, London, or New York, it does offer traders early access opportunities in the Asia-Pacific region. The Tokyo session is generally considered more active than Sydney with some of the most popular currency pairs traded during this session being the USD/JPY, AUD/JPY, EUR/JPY, GBP/JPY, among others.

London is said to be the largest forex trading center worldwide, and volatility typically increases exponentially during the London session. Major currency pairs like the GBP/USD, EUR/USD and USD/JPY also experience the most movement. The overlap between the New York and London session is one of the most busy trading periods, with high levels of liquidity and volatility, especially for pairs that contain the USD.

Why do traders choose MetaTrader 4 for 24 hour trading?

MetaTrader 4 enables a trader to participate in any one of the aforementioned international trading sessions. The choice of session however is largely dependent on one’s strategy, tolerance for risk, budget, and expertise.

The MT4 platform is also highly flexible, offering the ability to trade at any time, regardless of one’s schedule. This is particularly useful for traders who are short on time but looking to leverage a 24 hour trading cycle to generate gains.

MetaTrader 4 also allows a trader to access global markets, regardless of what time zone they happen to fall into. This means a trader can execute trades involving multiple currency pairs from Europe, Asia, the U.S., etc, via the platform. This accommodates portfolio diversification, mitigating the risk that comes with being restricted to one particular asset.

The newsfeed in the MT4 platform provides traders with access to real-time news and up-to-date market data, even if they occur outside of regular trading hours. This is particularly important for traders looking to leverage market moving events which give rise to trading opportunities that must be acted on immediately.

MetaTrader 4 also offers automated (algorithmic or algo) trading. Using EAs which are programmed to execute positions based on predefined criteria, provides the trader with the flexibility to step away from their platform, but without the risk of missing an opportunity. This level of automation is very useful for someone engaged in 24 hour trading, but who can’t possibly monitor opportunities every moment of the day.

MT4 is also packed with advanced trading tools and indicators, to make informed trading decisions across sessions, throughout the trading day.

Are there any risks associated with 24 hour trading?

The simple answer: absolutely. For one, by holding positions beyond the close of a trading day, the trader exposes themselves to overnight risk. A trader can’t possibly monitor every market in every region every hour of the day or night. And while algorithmic trading might reduce this risk, it cannot possibly eliminate it. This is why implementing a proper risk management plan is key to safeguard your funds in the event that the market moves adversely and prices move against you.

Further, while the MetaTrader 4 accommodates 24-hour trading, it cannot possibly mitigate the negative impact that excessive screen time can have on a trader’s emotional state of mind. Ultimately, having the ability to trade 24 hours a day may lead to excessive trading (overtrading) leading to adverse trading outcomes. For this reason, traders need to take the appropriate steps to manage their trading psychology in a way that reduces the stress, fear, panic and anxiety that often comes with trading.

Finally, remember that while MetaTrader 4 gives you the ability to trade 24 hours a day, this doesn’t mean that every session offers the same level of market activity or opportunities. This is because volatility and liquidity can increase or decrease based on the time of day or the market that’s in session. So, ensure you pick a trading strategy that is best suited to the session you wish to trade, and that the session itself aligns with your particular objectives.

Picking a trading strategy that is aligned with your goals

Before you begin executing trades, ensure you’ve selected a trading strategy that will help you achieve your goals.

A variety of trading strategies exist, from day trading to scalping, and from swing trading to position trading. Some even trade based on news or trends. Choosing which strategy is best for you is dependent on:

Your level of expertise

How experienced a trader are you? Do you know enough to engage in scalping which is an incredible fast paced approach to trading, or would it be best to start off with position trading that has a longer-term perspective? If you’re just starting out, it’s probably best to first acquire a trading related education so that you widen your scope of knowledge, helping you to make more informed trading decisions.

Your trading psychology

Ask yourself, do you have what it takes, emotionally, to handle a highly volatile trading session, or is your temperament better suited to less volatile markets. Trading requires patience, discipline, and focus. It also requires a decision making process based on analysis and data, not one driven by feelings.

The amount of time you have to commit to trading

Each trading strategy no matter if you are a newbie or a professional, requires something different from you in terms of commitment. Scalping for instance needs hours of your time because it involves a high volume of trades being opened and closed within seconds or minutes, frequently thoughout the day. Position trading on the other hand requires far less time commitment, because it takes a longer-term approach. Positions are held for weeks and even years.

Trading with IronFX

Register with IronFX and gain access to a top-tier, flexible trading experience, more than 500 tradable instruments, multiple account types, and fast trade execution. Through this broker, you’ll also be able to enjoy seamless withdrawals and deposits, and market access via the MetaTrader 4 (MT4) trading platform, arguably one of the world’s most popular trading systems amongst global traders. The IronFX Academy also offers an abundant source of educational resources to boost one’s skills and acquire fundamental trading insights.

Disclaimer: This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.