Forex Market Hours: The Best Times To Trade Forex
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Written by:
Crispus Nyaga -
Edited by:
Eno Eteng -
Fact checked by:
George Rossi -
Updated:

With over $7 trillion traded every day, the Forex market is not only the largest but also the most liquid financial market globally. People have the opportunity to engage in trading for twenty four hours from Monday through Friday in the forex market as opposed to stock markets which have fixed opening hours. However, not all forex market hours are created equal. It is essential to understand the various market sessions and identify when it is best to trade to maximize profits while reducing risks.
Forex Markets Work Hours
The Forex market is open for 24 hours a day, starting on Sunday evening and ending on Friday night, in every time zone around the world. It is possible to keep the market running continuously because of some trading periods that start as others end in important financial centers such as Sydney, Tokyo, London, and New York. For one to maximize on the special features within the forex markets, it’s necessary to understand the operation of these sessions and their overlapping times.
The Four Major Forex Sessions:
- Sydney Session (10:00 PM – 7:00 AM GMT):
After the weekend, the Sydney session opens first, marking the beginning of the business week. The level of activity in this session is usually medium and there are less price changes compared to other sessions. This is a perfect moment for those who want to trade under calm and predictable conditions. - Tokyo Session (12:00 AM – 9:00 AM GMT):
The Tokyo session, also referred to as the Asian session, experiences considerable trading volume particularly in the Japanese yen (JPY) related currency pairs. Traders can take advantage of this session because the Asian markets react first to new releases and events, but there may be less volatility than in later sessions. - London Session (8:00 AM – 5:00 PM GMT):
The London session is the largest and most active of the four, accounting for a substantial portion of daily trading volume. This session is characterized by higher liquidity and volatility, making it a preferred time for many traders, and it’s also the most preferable forex market opening hours Singapore. The overlap with the New York session also creates a period of heightened activity and potential profit opportunities. - New York Session (1:00 PM – 10:00 PM GMT):
The New York session is the last major trading period of the day. It sees high trading volumes and volatility, particularly during the overlap with the London session. Key central bank data releases from the United States can lead to significant market movements, presenting traders with both opportunities and risks.
Best Time For Trading
Trading occurs in the forex market for twenty-four hours each day, five days every week, but this does not mean that every trading hour is the same. The most favorable forex market hours to engage in trading are usually when there is increased market activity leading to higher liquidity and volatility. In most cases, this occurs when the major trading sessions overlap:
- London/New York Overlap: The overlap between the European and North American sessions, from 8 AM to 12 PM EST, is considered the best time to trade. This period offers the highest liquidity and volatility, as both London and New York are active, resulting in increased trading opportunities and tighter spreads.
- Asian/London Overlap: The overlap between the Asian and European sessions, from 2 AM to 4 AM EST, can also present favorable trading conditions. Although less liquid than the London/New York overlap, it still provides opportunities due to the simultaneous activity in Tokyo and London.
What Is Session Overlap?
A session overlap is experienced in the Forex market when two major trading sessions operate at the same time. Traders regard this as a very important period because during these overlaps, there is usually high liquidity and volatility which creates more trading opportunities with potential profits.
- London-New York Overlap (1:00 PM – 5:00 PM GMT): The overlap between the London and New York sessions is the most significant period in the Forex market. It brings together the two largest financial centers, leading to the highest trading volumes and liquidity. During this overlap, the market experiences heightened volatility, providing traders with substantial price movements and trading opportunities. Major currency pairs like EUR/USD, GBP/USD, and USD/JPY tend to show the most activity and volatility during this time, and when it comes to forex market hours Canada, this overlap is the most preferable.
- Sydney-Tokyo Overlap (12:00 AM – 7:00 AM GMT): Although not as dynamic as the London-New York overlap, the Sydney-Tokyo overlap still offers trading opportunities, especially for currency pairs involving the Japanese yen (JPY) and Australian dollar (AUD). This overlap is characterized by more moderate volatility, which may be appealing to traders who prefer a less intense trading environment.
Increased market activity is what makes session overlaps important. An overlap of two sessions results in increased trading by more market players, so there is high liquidity, narrow spread as well as volatile prices most of the time. Day traders and scalpers find this environment perfect for them since they depend on volatility to make their entries and exits out of trades quick but profitable. On top of that, there is increased liquidity at such forex market hours which allows for the execution of big trades without affecting the market prices; something that benefits every trader irrespective of their trading style.
Why Is Forex Liquidity Important?
Forex liquidity is a term that describes how easy one can sell buy currency pairs on the market without impacting their rates. In the forex market, high liquidity is very important because it provides a number of advantages to traders such as:
- Tighter Spreads:
In a liquid market, the bid-ask spread is low. This means that there are lower costs involved in trading, allowing traders to enter and exit positions more efficiently. - Better Price Execution:
High liquidity ensures that traders can execute large orders quickly and at their desired price. This minimizes slippage—the difference between the expected price of a trade and the price at which it is actually executed. - Reduced Market Manipulation:
In a highly liquid market, it’s more difficult for any single entity to influence prices. This makes the Forex market more stable and predictable, providing a fairer trading environment. - Increased Trading Opportunities:
Liquid markets are characterized by more frequent price movements, creating opportunities for traders to capitalize on short-term price fluctuations.
To summarize, Forex liquidity is important in facilitating trade. It helps in lowering transaction costs, smoothing out price fluctuations as well as increasing the number of opportunities for profit; therefore, every forex trader should take into consideration this factor.
Is It Possible To Trade 24/7?
Forex market is open for trading for 24 hours each day and 5 days weekly, starting from Sunday evening up to Friday night. The interlinked trading system is enhanced by the fact that there are different financial centers which operate at different times during the day in various parts of the world. However, while the market is open almost around the clock, it is not possible to trade Forex 24/7.
As it was already mentioned, there are four main trading sessions in the foreign exchange market; Sydney, Tokyo, London and New York. Forex market hours for each of these sessions are different but they overlap at some points, creating time for high liquidity and trading activity. Nonetheless, the market shuts down during weekends; it closes on Friday evening in New York and opens again on Sunday evening in Sydney. This means there is a brief period each week when trading is not possible.
Why Can’t You Trade 24/7?
- Weekend Closures:
Forex market does not operate over the weekend. The market uses this break to refresh itself and there is no trading going on at this particular time. This is the primary reason why trading 24/7 is not possible in Forex. - Liquidity Fluctuations:
Even though the market is open for nearly 24 hours each day during the week, liquidity varies significantly throughout the day. Trading outside of peak hours or session overlaps can result in lower liquidity, wider spreads, and increased slippage, which may not be ideal for most traders. - Broker Trading Hours:
Forex brokers typically align their trading hours with the global forex market hours, meaning they are closed over the weekend. While some brokers offer trading on weekends for certain instruments like cryptocurrencies, traditional Forex pairs are generally unavailable. - Market Conditions:
Trading 24 hours a day, even during the open market hours, may not be practical or profitable due to changing market conditions. Traders typically focus on the most active times of the day, such as during session overlaps, to maximize their trading efficiency and potential profits.
Some brokers provide access to alternative markets like cryptocurrencies that operate all the time, even on weekends, for traders who may want to trade at that time. Nevertheless, one should be aware that such markets are characterized by different dynamics and risk when compared to Forex.