What is Cut off Time
Cut off time is defined as a particular point in time specified by a forex player declaring as the end of the current trading day and the opening of a new trading day within a forex market..
The concept of cutoff points is being widely interpreted & applied by the investors as per their needs. For instance, Investor A having securities with lower required Rate of Return , he will be willing to pay more as compared to Investor B who has higher rate of return for similar security indicating a higher cut off point rate for the investor A.
A cutoff point is significantly regarded as a nice “rule of thumb” particularly for financial securities, helping the investor to take more thoughtful investment decisions for them & deeply analyze the risk & returns.
The foreign exchange market is 24/7 open & operational across the week , enabling the for-ex dealers to schedule a daily cut-of—time for the sake of convenience on part of the investors for better understanding of trade’s timings.