GMT stands for Greenwich Mean Time. Due to its maritime connection, back in 1884 the village of Greenwich, London England, was chosen as the reference point for all time on Earth.
What does GMT mean?
GMT is the clock time recorded at the Royal Observatory in Greenwich, London. GMT is not affected by Summer Time (daylight saving time) when clocks change in the UK twice a year. When the sun reaches its highest point precisely above the Prime Meridian, it’s 1200 noon in Greenwich.GMT is a useful reference when trading financial markets. It’s essential to know what times various markets open worldwide relevant to your local time. For example, in a 24hr market such as forex trading, knowing the opening times of the different trading sessions in Sydney, Tokyo, London, and New York when based in Europe could prove valuable.