5. Forex Trading Sessions: When Can You Trade Forex?

Understand the Global Forex Sessions and the Best Times to Trade

The Forex market operates 24 hours a day, 5 days a week, thanks to the opening and closing times of different global financial centres.
Knowing when the market is most active helps traders choose the right time to trade and avoid slow or unpredictable movements.

This chapter explains all four major trading sessions and shows how they affect market volatility, spreads, and trading opportunities.

1. Forex Trading Sessions Overview

The Forex market is divided into four major sessions:

Sydney Session
Tokyo Session
London Session
New York Session

These sessions overlap, creating periods of high liquidity and strong price movement.

Here is the typical schedule in GMT:

Session	Opens (GMT)	Closes (GMT)
Sydney	10:00 PM	07:00 AM
Tokyo	11:00 PM	08:00 AM
London	07:00 AM	04:00 PM
New York	12:00 PM	09:00 PM

Because traders across the world operate in different time zones, the Forex market remains active almost nonstop.

2. Sydney Session (The Market Open)

Time:

10:00 PM – 07:00 AM GMT

Market Characteristics:

It is the first market to open, signaling the start of the Forex day.
Volatility is moderate, as trading volume is still low.
Australian and New Zealand dollar pairs (AUD/USD, NZD/USD) are most active.

Best Pairs to Trade:

AUD/USD
AUD/JPY
NZD/USD
NZD/JPY

Who Trades Here?

Retail traders
Asian-Pacific banks
Commodity markets

The Sydney session sets the tone for the upcoming Tokyo session.

3. Tokyo Session (Asian Session)

Time:

11:00 PM – 08:00 AM GMT

Market Characteristics:

The Asian session is known for consistent, steady movement.
Volatility increases compared to Sydney.
JPY pairs show strong activity, influenced by the Bank of Japan.

Best Pairs to Trade:

USD/JPY
EUR/JPY
GBP/JPY
AUD/JPY

Key Features:

The Tokyo session accounts for nearly 20% of daily Forex volume.
Markets may experience narrowed spreads on yen-based pairs.
Breakouts sometimes occur from consolidation left by the New York session.

Asian session is ideal for traders who prefer slow, predictable price movements.

4. London Session (The Power Session)

Time:

07:00 AM – 04:00 PM GMT

Market Characteristics:

The London session is the most important Forex session.
More than 35% of global Forex transactions occur here.
High liquidity, tight spreads, and strong price trends.

Best Pairs to Trade:

EUR/USD
GBP/USD
USD/CHF
GBP/JPY
EUR/JPY

Why London Is the Best Session:

European banks open
Economic news releases (EU & UK)
Increased institutional activity
Higher volatility than Asia

Trend traders and day traders often prefer the London session because of its clarity and strength of movement.

5. New York Session (The Volatility Booster)

Time:

12:00 PM – 09:00 PM GMT

Market Characteristics:

New York overlaps with London for the first 4 hours → highest volatility period of the entire day.
USD pairs dominate as U.S. economy influences global markets.

Best Pairs to Trade:

EUR/USD
GBP/USD
USD/JPY
USD/CAD
XAU/USD (Gold)

Important Events in New York:

U.S. employment reports
Federal Reserve announcements
Inflation data
GDP updates

The New York session often determines the final market direction of the trading day.

6. Session Overlaps (The Best Times to Trade)

Overlaps occur when two major markets operate at the same time. These periods bring huge liquidity and the strongest price moves.

London–New York Overlap

Time: 12:00 PM – 04:00 PM GMT
This is the most volatile and profitable time to trade due to:

High trading volume
Tight spreads
Major economic news
Institutional traders active on both continents

Recommended for:

Day traders
Momentum traders
Breakout traders

Sydney–Tokyo Overlap

Time: 11:00 PM – 01:00 AM GMT
A smoother, less volatile overlap suitable for:

Scalpers
Trend-followers
Asian pair traders

London–Tokyo Overlap (Short period)

This overlap is brief and less impactful but can cause transition-based movements as markets shift from Asia to Europe.

7. Best & Worst Times to Trade Forex

✔ Best Times

During session overlaps
During London session
During major economic news releases
When liquidity and volume are high

✘ Worst Times

During market opening hours (spreads widen)
During low-volume Asian afternoons
On Fridays after 5 PM GMT
Before major unexpected news events
During holidays & bank closures

Trading at the right time dramatically increases your profit potential.

5. Forex Trading Sessions: When Can You Trade Forex?

1. Forex Trading Sessions Overview

2. Sydney Session (The Market Open)

Time:

Market Characteristics:

Best Pairs to Trade:

Who Trades Here?

3. Tokyo Session (Asian Session)

Time:

Market Characteristics:

Best Pairs to Trade:

Key Features:

4. London Session (The Power Session)

Time:

Market Characteristics:

Best Pairs to Trade:

Why London Is the Best Session:

5. New York Session (The Volatility Booster)

Time:

Market Characteristics:

Best Pairs to Trade:

Important Events in New York:

6. Session Overlaps (The Best Times to Trade)

London–New York Overlap

Sydney–Tokyo Overlap

London–Tokyo Overlap (Short period)

7. Best & Worst Times to Trade Forex

✔ Best Times

✘ Worst Times

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