The global forex market operates 24 hours a day, five days a week, but not all trading hours are equal. Different regions become active at different times, creating distinct types of forex trading sessions that influence market volatility, liquidity, and trading opportunities. These sessions correspond to the business hours of the world’s major financial centres.

This article explains the four main forex trading sessions, how they differ, and when each offers the best trading conditions.

The Four Main Forex Trading Sessions

1. Sydney Session (Pacific Session)

• Open: 10:00 PM GMT
• Close: 7:00 AM GMT
• Pairs to Watch: AUD/USD, NZD/USD
• Characteristics:
  • Marks the start of the trading week (Monday morning in Sydney)
  • Low volatility and thin liquidity
  • Good for planning and range trading strategies

2. Tokyo Session (Asian Session)

• Open: 12:00 AM GMT
• Close: 9:00 AM GMT
• Pairs to Watch: USD/JPY, EUR/JPY, GBP/JPY
• Characteristics:
  • Moderate volatility
  • Focus on JPY pairs and Asian markets
  • Often overlaps with Sydney for smoother price action

3. London Session (European Session)

• Open: 8:00 AM GMT
• Close: 5:00 PM GMT
• Pairs to Watch: GBP/USD, EUR/USD, EUR/GBP
• Characteristics:
  • Highest liquidity and volatility
  • Major economic news from the UK and Europe
  • Drives large price movements and breakouts

4. New York Session (American Session)

• Open: 1:00 PM GMT
• Close: 10:00 PM GMT
• Pairs to Watch: USD/CAD, GBP/USD, USD/JPY
• Characteristics:
  • Second-most liquid session
  • High volatility in USD pairs
  • Overlaps with London session (1 PM – 5 PM GMT) for peak trading

Session Overlaps and Their Impact

Overlap	Time (GMT)	Key Advantage
London–New York	1:00 PM – 5:00 PM	Highest volume, ideal for breakout trades
Tokyo–London	8:00 AM – 9:00 AM	Short window, moderate liquidity
Sydney–Tokyo	12:00 AM – 7:00 AM	Asian market focus, smooth volatility

Why Forex Sessions Matter

• Volatility: Some sessions (e.g. London) offer more price movement
• Liquidity: Tighter spreads occur during high-volume periods
• Timing: Aligning trades with the active session of a currency pair improves results
• News Impact: Most macroeconomic data is released during each region’s session

Case Study: Trading the London–New York Overlap

Trader: Olivia, swing trader
Focus: GBP/USD and EUR/USD
Session: London–New York overlap (1 PM – 5 PM GMT)
Result:

• Captures large price swings during economic releases
• Lower slippage due to high liquidity
• Uses breakout strategy with 1:2 risk-reward

Her consistent profitability increased after learning how to time trades according to each forex session through a structured Forex Course.

Key Takeaways

• The forex market operates through four main sessions: Sydney, Tokyo, London, and New York
• Each session reflects the business hours of key financial hubs
• Volatility and liquidity vary by session, impacting strategy selection
• The London–New York overlap offers the best conditions for active traders
• Session timing should be integrated into all trading plans for optimal execution

Frequently Asked Questions

What are the main forex trading sessions?

Sydney, Tokyo, London, and New York sessions — each aligning with major global markets.

Which forex session is best for beginners?

The London session is ideal due to high liquidity and clearer price movements.

When is the forex market most volatile?

During the London–New York overlap (1:00 PM – 5:00 PM GMT), when both financial hubs are active.

Can I trade during any session?

Yes, but results vary. Trade pairs aligned with the session — e.g., JPY during Tokyo, GBP during London.

Is forex trading open on weekends?

No, forex trading closes on Friday at 10:00 PM GMT and reopens Sunday at 10:00 PM GMT with the Sydney session.