Understanding the best forex trading hours is essential for traders looking to maximise profitability and minimise risk. The forex market operates 24 hours a day, five days a week, but not all trading hours offer the same levels of liquidity, volatility, or opportunity.

Key Takeaways

• The forex market is open 24/5, but peak trading occurs during session overlaps
• The London-New York overlap (1 pm–4 pm UK time) is the most active window
• Major sessions: Sydney, Tokyo, London, and New York
• Timing matters more than time spent — trade when volatility is highest
• Our CPD Accredited Mini MBA teaches optimal time-based strategies

Forex Market Sessions Explained

The global forex market is divided into four main sessions:

1. Sydney Session (10 pm – 7 am UK time)

• First market to open
• Lower liquidity
• AUD and NZD pairs are most active

2. Tokyo Session (12 am – 9 am UK time)

• Second major session
• JPY pairs see movement
• Overlap with Sydney increases activity slightly

3. London Session (8 am – 5 pm UK time)

• Most liquid session
• Major currency pairs see the most volatility
• Economic news releases from the UK and EU impact markets

4. New York Session (1 pm – 10 pm UK time)

• Second most liquid session
• USD pairs dominate
• Overlaps with London from 1 pm to 4 pm UK time

Best Times to Trade Forex

London-New York Overlap (1 pm – 4 pm UK time)

• Highest volatility and liquidity
• Best for day traders and scalpers
• Major economic releases from both regions

London Open (8 am – 10 am UK time)

• Breakouts often occur from overnight ranges
• GBP and EUR pairs offer strong movement

Asian Session Crossovers (12 am – 3 am UK time)

• Good for AUD/JPY and NZD/JPY traders
• Lower spreads on Asia-Pacific pairs

When to Avoid Trading

• Low liquidity periods (10 pm – 12 am UK time): Market transitions lead to erratic price action
• Fridays after 6 pm UK time: Market quiets before weekend
• Sundays: Gaps from weekend news but thin liquidity
• During major news events: Spreads can widen significantly

Case Study: Mastering Time Zones to Improve Results

Amir was struggling with inconsistent results despite sound analysis. Through our CPD Accredited Mini MBA in Applied Professional Forex Trading, he learned to align his trading with high-liquidity sessions. By focusing on the London-New York overlap and reducing trades outside peak hours, Amir reduced slippage, improved his win rate, and cut trading stress by 40%.

Frequently Asked Questions

What is the most active time to trade forex?

The London-New York overlap from 1 pm to 4 pm UK time is the most active and liquid trading period.

Can I trade forex 24/7?

No. The forex market is open 24 hours a day from Monday to Friday, but not on weekends.

What is the worst time to trade forex?

The worst times are during low liquidity—typically late Friday, early Sunday, or between 10 pm–12 am UK time.

Is it better to trade forex in the morning or at night?

Morning (especially London open) is better for most traders due to higher volume and clearer trends.

Do forex trading hours affect strategy performance?

Yes. Strategies like scalping require high liquidity, which only occurs during specific market hours.

To master the timing of your trades and apply time-based strategies like a professional, enrol in our expert-led Trading Courses and take control of your forex journey.