Quote Time and Trade Time are fundamental concepts in forex trading that every trader should understand. By knowing these terms, traders can understand when the market allows execution.
This blog will delve into what Quote Time and Trade Time mean, their importance, and how they influence trading decisions in the forex market. Quote Time can vary depending on the asset class.
Quote Time refers to the period when price quotes of specific symbols are provided to an entire trading Platform. This is the exact time at which the bid and ask prices are quoted. Quote Time usually spans over a full 24-hour period but depending on symbols it can vary while trading actions (such as opening new trades, closing trades, or executing limit orders including TP/SL orders) are not available throughout the entire period.
For instance, the Quote time for EURUSD is from 00:00:00 to 24:00:00, but the trade time is from 00:15:00 to 23:58:00, this means the pair EURUSD’s price will be flowing 24/7 However, trade executions will not occur during those 17 minutes (23:58:01 to 00:14:59).
The question may arise: Why is trading not allowed in these 17 minutes? During the first few minutes of the market opening after the midnight market break, the quote/price feed from banks and liquidity providers tends to introduce the following things: occasional ticks, small/large gaps & sudden spikes.
You as a trader, engaging in execution during this window exposes you to significant risks. The market’s unpredictable behavior, characterized by infrequent ticks, wide spreads, and price gaps, can lead to substantial slippage. This could result in unfavorable trade entries or exits, potentially causing a sharp drawdown on your position. The unpredictable nature of price movements in these moments makes trading highly risky.
Trade Time is the period during which trading actions can be executed. This can be different from Quote Time, especially in a volatile market.
For instance, The Quote time for EURUSD is from 00:00:00 to 24:00:00 but the trade time is from 00:15:00 to 23:58:00, this means the pair EURUSD is tradeable only from 00:15:00 to 23:58:00.
Find Quote Time and Trade Time in the Picture below or you can also find this via symbol Specification in The Trading Terminal:
