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Daily Cut-Off

What is 'Daily Cut-Off'

In the forex market, a particular point in time specified by a forex dealer to stand as the end of the current trading day and the beginning of a new trading day. This is done for primarily administrative and logistical reasons, because although the forex market trades 24 hours a day, the market and its intermediaries require a specified beginning and end to each trading day in order to record trade dates and define settlement periods.

Explaining 'Daily Cut-Off'

For example, let's say a forex dealer specified that the daily cut-off was 5pm every day, and a trader placed two forex trades on the evening of January 1 - one at 4:50pm and another at 5:15pm. Since the daily cut-off is 5pm, the first trade would be booked as taking place on January 1, while the second would be recorded as a January 2 trade, since it took place after the daily cut-off.


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FAQ


What is the social science that studies how people interact with value?

Economics.

What does economics study in particular?

The production, distribution, and consumption of goods and services.

How do economists study these topics?

Economists use a variety of methods to gather information about economic activity. Some common methods include surveys, experiments, historical analysis, and mathematical modeling.

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