Daily Cut-Off
Wednesday, October 17th, 2007Some people don’t understand why you need a daily cut-off when dealing with a 24 hour market and more so when dealing with a completly electornic market. But the Daily Cut-Off refers to the specific point in time in a forex market that is identified by a forex trader as the end of the trading day and the beginning of a new one. This practice is done mainly for administrative and logistical reasons because the forex market continues to trade for 24 hours and there is a need to specify a beginning and an end to each trading day to make it easy to record trade dates as well as settlement periods.