Understanding forex trading times and sessions is vital for planning trades, identifying market volatility, and capitalising on the most liquid periods. The global nature of forex means the market runs 24 hours a day, five days a week, with trading divided into four major sessions across different time zones.

This article breaks down each session’s characteristics, overlaps, and strategic insights so you can time your trades with precision and maximise your performance.

Key Takeaways

• The forex market operates 24/5 across four main trading sessions: Sydney, Tokyo, London, and New York.
• Market volatility increases during session overlaps, especially London–New York.
• Timing trades around key economic events within sessions can improve success.
• Understanding each session’s traits helps align strategies with price behaviour.

The Four Major Forex Trading Sessions

Session	Open (GMT)	Close (GMT)	Key Currencies	Characteristics
Sydney	22:00	07:00	AUD, NZD	Low volatility, pre-market movement
Tokyo	00:00	09:00	JPY, AUD	Moderate liquidity, Asian data focus
London	08:00	17:00	GBP, EUR, CHF	Highest volatility, major moves
New York	13:00	22:00	USD, CAD	Volatile open, fades after London

Note: Times may shift slightly due to daylight saving changes in specific countries.

Session Overlaps and Why They Matter

1. London–New York Overlap (13:00–17:00 GMT)

• Most volatile period of the day.
• Major economic releases (NFP, CPI, interest rate decisions).
• Ideal for day traders, scalpers, and breakout strategies.

2. Sydney–Tokyo Overlap (00:00–07:00 GMT)

• Less volatile, good for range trading and slower market conditions.
• Focus on AUD/JPY, AUD/USD, and NZD pairs.

Best Time to Trade Forex Based on Strategy

Strategy	Best Session	Why
Scalping	London & NY Overlap	Tight spreads, fast moves
Swing Trading	London session or Tokyo open	Trend development, technical levels hold well
News Trading	NY session	US data drives volatility
Range Trading	Sydney or Tokyo sessions	Slower, mean-reverting behaviour

Time-Zone Management

Use a world clock or trading platform with built-in session indicators to ensure you’re always aware of the active session. Our Forex Course includes downloadable session charts and tools to optimise your daily plan across global markets.

How Market Behaviour Changes by Session

Tokyo Session

• Stronger yen moves due to Asian economic reports.
• Risk-sensitive currencies react to China/Asia-Pacific news.
• Lower liquidity = fewer fake breakouts.

London Session

• Opening surge in volatility.
• Economic reports from UK, Eurozone, and Switzerland.
• Trend continuation often begins here.

New York Session

• US dollar is in focus.
• Best liquidity early, but volume tapers off late session.
• Often reacts to Fed announcements and global sentiment.

Case Study: Trader Who Timed the Market Right

Priya, a part-time trader in India, initially traded during the Sydney session due to work constraints and experienced low profitability. After adjusting her schedule to trade the London–New York overlap during Indian evening hours, she noticed a 47% improvement in win rate due to cleaner price action and better liquidity in GBP/USD and EUR/USD.

Frequently Asked Questions

What are the main forex trading sessions?

Sydney, Tokyo, London, and New York—each reflecting their respective financial centres.

Which is the most active forex session?

The London session is the most active, especially during the overlap with New York.

What is the best time to trade forex in India?

The London–New York overlap (6:30 PM – 10:30 PM IST) offers the most volatility and opportunities.

Can I trade forex 24/7?

Forex operates 24/5, not 24/7. It opens Monday morning (Sydney) and closes Friday night (New York).

Why is session timing important in forex?

Because volatility, liquidity, and news impact vary by session, which affects trade outcomes.