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GMT Issues

Discussion in 'Forex Articles' started by David Green, Oct 21, 2007.

  1. David Green

    David Green Recruit

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    SUBJECT: GMT Issues

    CAUTION: Don’t miss a big trade thru a little understanding!Many trading events, some key trading events are scheduled to GMT. Most of us are loosely aware of GMT and have some idea of what it actually means but I suspect that few of us have a clear GMT understanding! This could cost you some serious money if you accidentally miss a key trade entry or exit, through misreading the trade time.

    GMT EXPLANATION: As you probably are aware, Greenwich Mean Time, GMT, is the reference time of the Prime Meridian which passes through the East London Town/Borough of Greenwich. Because it is a fixed reference, GMT doesn't move backwards or forwards in the Spring or Autumn for Daylight Savings Time. So it happens that the local British time synchronizes with GMT in the Winter and leads GMT by 1 hour in the Summer when Britain moves forward 1 hour to British Summer Time. Most of Western Europe is set at 1 hour ahead of Britain, making Western Europe 1 hour ahead of GMT (Winter) and 2 hours ahead of GMT (Summer). The exception seems to be Portugal, which is aligned with the British Time Zone. Further south, NW Africa (including Casablanca) is also aligned with the British Time Zone. Incidentally, California is therefore 8 hours behind GMT (Winter) and 7 hours behind GMT (Summer). In 2007, Daylight Savings Time reverts to Winter Time 28 OCT (Europe) and 04 NOV (USA + Canada); added bit of confusion for one week! GMT of course is a 24-hour clock system, whereas most of the financial (trading) world still operates on an am/pm 12-hour clock system.


    David Green
    Trader Rex
    mdgreen@roadrunner.com
    760-599-9661 Office
     

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