Forex trading time refers to the specific hours when the foreign exchange market is open and active. Unlike stock markets, the forex market operates 24 hours a day, five days a week. This continuous trading window is divided into four major global trading sessions, allowing traders around the world to participate at virtually any time.

Key Takeaways

• Forex trading is open 24 hours a day, from Monday to Friday.
• It operates through four major sessions: Sydney, Tokyo, London, and New York.
• Trading volume and volatility vary depending on the session.
• Overlapping sessions often offer the best opportunities for traders.
• There is no central exchange; forex is traded over-the-counter globally.

Global Forex Trading Sessions

1. Sydney Session (10 PM – 7 AM GMT)

• Opens the forex market each week.
• Often slower, ideal for range-bound strategies.

2. Tokyo Session (12 AM – 9 AM GMT)

• Major activity in Asian currencies like JPY and AUD.
• Good for volatility during economic news in Asia.

3. London Session (8 AM – 5 PM GMT)

• Highest volume of trading.
• Major currency pairs like EUR/USD, GBP/USD are most active.

4. New York Session (1 PM – 10 PM GMT)

• Second most active session.
• USD pairs dominate due to overlapping with London.

Best Time To Trade Forex

The most favourable times are during session overlaps:

• London & New York Overlap (1 PM – 5 PM GMT): Highest liquidity and volatility.
• Tokyo & London Overlap (8 AM – 9 AM GMT): Moderate volume, especially for JPY pairs.

Trading at these times improves the chances of capturing larger price movements and reduces spreads due to higher liquidity.

Case Study: Timing Trades for Better Results

Tola, a forex trader in South Africa, used to trade late evenings with little success. After analysing her trades, she discovered low liquidity during her active hours. By adjusting her schedule to trade the London-New York overlap, she saw significant improvement in execution and profitability. She now trades between 2 PM and 5 PM local time, focusing on EUR/USD and GBP/JPY.

Frequently Asked Questions

What is the forex trading time in GMT?

Forex trading runs from 10 PM Sunday to 10 PM Friday GMT, with sessions rotating across Sydney, Tokyo, London, and New York.

Is forex trading available on weekends?

No. The market closes Friday 10 PM GMT and reopens Sunday 10 PM GMT.

What are the best hours to trade forex?

The best hours are during session overlaps, especially London-New York (1 PM – 5 PM GMT).

Why does the forex market run 24 hours?

It’s decentralised and follows the business hours of global financial hubs across different time zones.

Do trading times affect strategy?

Yes. Scalping and day trading work best during high-volatility sessions, while swing trading may be suited for quieter periods.