Understanding when forex trading times occur is crucial for success in the currency markets. Forex is a decentralised market that operates 24 hours a day, five days a week, and is divided into four major trading sessions based on global financial centres.

This guide will explain the exact timings of each trading session, which ones offer the highest volatility, and how to align your strategy to global market hours.

Key Takeaways

• The forex market operates 24 hours a day, Monday to Friday.
• There are four main trading sessions: Sydney, Tokyo, London, and New York.
• The most active trading periods occur when sessions overlap.
• Session times vary slightly with Daylight Saving Time (DST).
• Smart traders align their strategies with the most liquid sessions.

Overview of Forex Trading Sessions

Forex trading is continuous because global markets open at different times. The market opens with Sydney and closes with New York.

Session	Opens (GMT)	Closes (GMT)
Sydney	22:00	07:00
Tokyo	00:00	09:00
London	08:00	17:00
New York	13:00	22:00

Best Times to Trade Forex

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

This is the busiest and most volatile period in the forex market. Both major financial centres are active, increasing volume and creating price movement, especially in:

• EUR/USD
• GBP/USD
• USD/JPY

2. Tokyo and London Overlap (08:00–09:00 GMT)

Although brief, this overlap allows for volatility in yen pairs such as:

• EUR/JPY
• GBP/JPY
• AUD/JPY

3. Early Tokyo Hours (00:00–02:00 GMT)

These are ideal for trading Asia-based pairs and cross-currency pairs with low spreads:

• AUD/USD
• NZD/USD
• USD/JPY

If you’re still unsure how to apply this in real-time, enrolling in a structured Forex Course can teach you session-based strategy execution, risk management by volatility cycles, and how to avoid low-liquidity traps.

How Session Timing Impacts Strategy

Strategy Type	Best Session	Reason
Scalping	London/New York overlap	High liquidity and fast-moving price action
Trend Following	London Session	Strong directional moves from economic news
Range Trading	Sydney/Tokyo Sessions	Lower volatility allows for range identification
News Trading	Session Openings	Events like NFP and ECB announcements occur then

Case Study: Timing a Trade With Session Overlap

Sandeep, a swing trader in India, noticed repeated breakouts in GBP/USD during the London open. After backtesting, he began focusing his entries between 08:00 and 10:00 GMT, aligning them with economic data releases. His win rate improved by 21% simply by changing his trading time.

Common Mistakes Related to Forex Trading Times

• Trading during low liquidity: Such as late New York or before Sydney opens.
• Ignoring news events: News at session opens often causes unexpected moves.
• Assuming 24/7 trading: Forex is closed on weekends and holidays.

Frequently Asked Questions

What time does forex trading start?

The forex market opens with the Sydney session at 22:00 GMT on Sunday evening.

What time does forex trading close?

The market closes at 22:00 GMT on Friday after the New York session ends.

What is the most active time to trade forex?

The London and New York session overlap (13:00–17:00 GMT) is the most active and volatile time.

Can I trade forex 24/7?

No, forex operates 24 hours a day from Monday to Friday. It is closed on weekends.

Do forex session times change with daylight saving?

Yes, some sessions adjust by one hour depending on the country’s daylight saving policy.