Question

concerning the market of foreign exchange, 'It only makes sense to compare quotations at a time when markets overlap'.

First of all, how can markets 'overlap' and secondly, why does it not make sense to look at a quotation when not?

Maybe this picture may help you for the answer:

5PM SINGAPORE 9A.M 5PM HONG KONG 9AM 4PM FRANKFURT 8AM 3PM NEW YORK 7A.M 5PM TOKYO 9AM 4PM LONDON 8AM LONDON FRANKFURT NEW YORK TOKYO KONG GMT 2100 2000 1900 1800 1700 1600 1500 1400 1300 1200 1100 1000 0900 0800 0700 0600 0500 0400 0300 0200 0100 2400

Answer 1

Markets overlap during standardised global time when each financial and stock market is operating and the date is same despite being on different horizons.

Markets generally overlap during similar time zone of operations of particular country with GMT and it makes sense to look at quotations when the dates of both markets coincide. Because each day the forex rate fluctuates and cannot be pegged for trade purposes if it keeps fluctuating based on time and date.